Correlation Between Yunnan Xiyi and Qingdao Choho
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Qingdao Choho Industrial, you can compare the effects of market volatilities on Yunnan Xiyi and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Qingdao Choho.
Diversification Opportunities for Yunnan Xiyi and Qingdao Choho
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Qingdao is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and Qingdao Choho go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Qingdao Choho
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to generate 1.21 times more return on investment than Qingdao Choho. However, Yunnan Xiyi is 1.21 times more volatile than Qingdao Choho Industrial. It trades about 0.03 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.01 per unit of risk. If you would invest 1,115 in Yunnan Xiyi Industrial on September 3, 2024 and sell it today you would earn a total of 24.00 from holding Yunnan Xiyi Industrial or generate 2.15% 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. Qingdao Choho Industrial
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Qingdao Choho Industrial |
Yunnan Xiyi and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Qingdao Choho
The main advantage of trading using opposite Yunnan Xiyi and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho'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 |
| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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