Correlation Between Yunnan Xiyi and Guangdong Jingyi
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Yunnan Xiyi and Guangdong Jingyi 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 Xiyi with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Guangdong Jingyi.
Diversification Opportunities for Yunnan Xiyi and Guangdong Jingyi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Guangdong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Yunnan Xiyi 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 Xiyi Industrial are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Guangdong Jingyi
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Xiyi Industrial is 1.08 times less risky than Guangdong Jingyi. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 694.00 in Guangdong Jingyi Metal on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Guangdong Jingyi Metal or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Guangdong Jingyi Metal |
Yunnan Xiyi and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Guangdong Jingyi
The main advantage of trading using opposite Yunnan Xiyi and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Yunnan Xiyi vs. Anhui Huilong Agricultural | Yunnan Xiyi vs. Huasi Agricultural Development | Yunnan Xiyi vs. Shantui Construction Machinery | Yunnan Xiyi vs. Sinomach General Machinery |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co | Guangdong Jingyi vs. Hoshine Silicon Ind |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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