Correlation Between Yunnan Yuntou and Fujian Oriental
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By analyzing existing cross correlation between Yunnan Yuntou Ecology and Fujian Oriental Silver, you can compare the effects of market volatilities on Yunnan Yuntou and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Yuntou and Fujian Oriental.
Diversification Opportunities for Yunnan Yuntou and Fujian Oriental
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Fujian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Yuntou Ecology and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Yunnan Yuntou i.e., Yunnan Yuntou and Fujian Oriental go up and down completely randomly.
Pair Corralation between Yunnan Yuntou and Fujian Oriental
Assuming the 90 days trading horizon Yunnan Yuntou is expected to generate 1.26 times less return on investment than Fujian Oriental. But when comparing it to its historical volatility, Yunnan Yuntou Ecology is 1.86 times less risky than Fujian Oriental. It trades about 0.22 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 594.00 in Fujian Oriental Silver on August 28, 2024 and sell it today you would earn a total of 139.00 from holding Fujian Oriental Silver or generate 23.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Yuntou Ecology vs. Fujian Oriental Silver
Performance |
| Timeline |
| Yunnan Yuntou Ecology |
| Fujian Oriental Silver |
Yunnan Yuntou and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Yuntou and Fujian Oriental
The main advantage of trading using opposite Yunnan Yuntou and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Yuntou position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Yunnan Yuntou vs. Cambricon Technologies Corp | Yunnan Yuntou vs. Loongson Technology Corp | Yunnan Yuntou vs. Shenzhen Fortune Trend | Yunnan Yuntou vs. Wuhan Xianglong Power |
| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. Agricultural Bank of | Fujian Oriental vs. China Construction Bank | Fujian Oriental 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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