Correlation Between Gansu Huangtai and Yunnan Hongxiang
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Yunnan Hongxiang Yixintang, you can compare the effects of market volatilities on Gansu Huangtai and Yunnan Hongxiang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gansu Huangtai with a short position of Yunnan Hongxiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Yunnan Hongxiang.
Diversification Opportunities for Gansu Huangtai and Yunnan Hongxiang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Yunnan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Yunnan Hongxiang Yixintang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Hongxiang Yix and Gansu Huangtai is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gansu Huangtai Wine marketing are associated (or correlated) with Yunnan Hongxiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Hongxiang Yix has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Yunnan Hongxiang go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Yunnan Hongxiang
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.58 times more return on investment than Yunnan Hongxiang. However, Gansu Huangtai is 1.58 times more volatile than Yunnan Hongxiang Yixintang. It trades about 0.1 of its potential returns per unit of risk. Yunnan Hongxiang Yixintang is currently generating about -0.08 per unit of risk. If you would invest 971.00 in Gansu Huangtai Wine marketing on August 30, 2024 and sell it today you would earn a total of 515.00 from holding Gansu Huangtai Wine marketing or generate 53.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Yunnan Hongxiang Yixintang
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Yunnan Hongxiang Yix |
Gansu Huangtai and Yunnan Hongxiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Yunnan Hongxiang
The main advantage of trading using opposite Gansu Huangtai and Yunnan Hongxiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Yunnan Hongxiang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yunnan Hongxiang will offset losses from the drop in Yunnan Hongxiang's long position.| Gansu Huangtai vs. Agricultural Bank of | Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. Bank of China | Gansu Huangtai vs. PetroChina Co Ltd |
| Yunnan Hongxiang vs. Zhongrun Resources Investment | Yunnan Hongxiang vs. Shanghai Jinfeng Wine | Yunnan Hongxiang vs. Metro Investment Development | Yunnan Hongxiang vs. Eyebright Medical Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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