Correlation Between Emdoor Information and Yili Chuanning
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By analyzing existing cross correlation between Emdoor Information Co and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Emdoor Information and Yili Chuanning 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 Emdoor Information with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Yili Chuanning.
Diversification Opportunities for Emdoor Information and Yili Chuanning
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emdoor and Yili is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote and Emdoor Information 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 Emdoor Information Co are associated (or correlated) with Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Emdoor Information i.e., Emdoor Information and Yili Chuanning go up and down completely randomly.
Pair Corralation between Emdoor Information and Yili Chuanning
Assuming the 90 days trading horizon Emdoor Information is expected to generate 3.48 times less return on investment than Yili Chuanning. In addition to that, Emdoor Information is 1.16 times more volatile than Yili Chuanning Biotechnology. It trades about 0.02 of its total potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.07 per unit of volatility. If you would invest 868.00 in Yili Chuanning Biotechnology on September 4, 2024 and sell it today you would earn a total of 478.00 from holding Yili Chuanning Biotechnology or generate 55.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Emdoor Information |
| Yili Chuanning Biote |
Emdoor Information and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Yili Chuanning
The main advantage of trading using opposite Emdoor Information and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Emdoor Information vs. FSPG Hi Tech Co | Emdoor Information vs. Wuhan Yangtze Communication | Emdoor Information vs. ChengDu Hi Tech Development | Emdoor Information vs. Tongyu Communication |
| Yili Chuanning vs. Yonyou Auto Information | Yili Chuanning vs. Dhc Software Co | Yili Chuanning vs. Dareway Software Co | Yili Chuanning vs. Emdoor Information Co |
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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