Correlation Between Yuan Longping and Saurer Intelligent
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By analyzing existing cross correlation between Yuan Longping High tech and Saurer Intelligent Technology, you can compare the effects of market volatilities on Yuan Longping and Saurer Intelligent 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 Yuan Longping with a short position of Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Saurer Intelligent.
Diversification Opportunities for Yuan Longping and Saurer Intelligent
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yuan and Saurer is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent and Yuan Longping 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 Yuan Longping High tech are associated (or correlated) with Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of Yuan Longping i.e., Yuan Longping and Saurer Intelligent go up and down completely randomly.
Pair Corralation between Yuan Longping and Saurer Intelligent
Assuming the 90 days trading horizon Yuan Longping High tech is expected to under-perform the Saurer Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, Yuan Longping High tech is 1.82 times less risky than Saurer Intelligent. The stock trades about -0.06 of its potential returns per unit of risk. The Saurer Intelligent Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Saurer Intelligent Technology on September 2, 2024 and sell it today you would lose (61.00) from holding Saurer Intelligent Technology or give up 21.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. Saurer Intelligent Technology
Performance |
| Timeline |
| Yuan Longping High |
| Saurer Intelligent |
Yuan Longping and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and Saurer Intelligent
The main advantage of trading using opposite Yuan Longping and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| Yuan Longping vs. Ming Yang Smart | Yuan Longping vs. 159681 | Yuan Longping vs. 159005 | Yuan Longping vs. Loctek Ergonomic Technology |
| Saurer Intelligent vs. China Petroleum Chemical | Saurer Intelligent vs. PetroChina Co Ltd | Saurer Intelligent vs. China State Construction | Saurer Intelligent vs. China Railway Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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