Correlation Between Yunnan Yuntou and Datang HuaYin
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By analyzing existing cross correlation between Yunnan Yuntou Ecology and Datang HuaYin Electric, you can compare the effects of market volatilities on Yunnan Yuntou and Datang HuaYin 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 Yunnan Yuntou with a short position of Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Yuntou and Datang HuaYin.
Diversification Opportunities for Yunnan Yuntou and Datang HuaYin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Datang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Yuntou Ecology and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric and Yunnan Yuntou 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 Yunnan Yuntou Ecology are associated (or correlated) with Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of Yunnan Yuntou i.e., Yunnan Yuntou and Datang HuaYin go up and down completely randomly.
Pair Corralation between Yunnan Yuntou and Datang HuaYin
Assuming the 90 days trading horizon Yunnan Yuntou Ecology is expected to under-perform the Datang HuaYin. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Yuntou Ecology is 1.17 times less risky than Datang HuaYin. The stock trades about -0.02 of its potential returns per unit of risk. The Datang HuaYin Electric is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Datang HuaYin Electric on September 13, 2024 and sell it today you would lose (1.00) from holding Datang HuaYin Electric or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yunnan Yuntou Ecology vs. Datang HuaYin Electric
Performance |
| Timeline |
| Yunnan Yuntou Ecology |
| Datang HuaYin Electric |
Yunnan Yuntou and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Yuntou and Datang HuaYin
The main advantage of trading using opposite Yunnan Yuntou and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Yuntou position performs unexpectedly, Datang HuaYin 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 Datang HuaYin will offset losses from the drop in Datang HuaYin's long position.| Yunnan Yuntou vs. ZJBC Information Technology | Yunnan Yuntou vs. Tongding Interconnection Information | Yunnan Yuntou vs. ButOne Information Corp | Yunnan Yuntou vs. Datang HuaYin Electric |
| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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