Correlation Between Yunnan Xiyi and Masterwork Machinery
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Masterwork Machinery, you can compare the effects of market volatilities on Yunnan Xiyi and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Masterwork Machinery.
Diversification Opportunities for Yunnan Xiyi and Masterwork Machinery
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Masterwork is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and Masterwork Machinery go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Masterwork Machinery
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to under-perform the Masterwork Machinery. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Xiyi Industrial is 1.8 times less risky than Masterwork Machinery. The stock trades about -0.03 of its potential returns per unit of risk. The Masterwork Machinery is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 557.00 in Masterwork Machinery on August 31, 2024 and sell it today you would earn a total of 64.00 from holding Masterwork Machinery or generate 11.49% 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. Masterwork Machinery
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Masterwork Machinery |
Yunnan Xiyi and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Masterwork Machinery
The main advantage of trading using opposite Yunnan Xiyi and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery's long position.| Yunnan Xiyi vs. Xiandai Investment Co | Yunnan Xiyi vs. Xiamen Jihong Package | Yunnan Xiyi vs. Luyin Investment Group | Yunnan Xiyi vs. Xinjiang Tianrun Dairy |
| Masterwork Machinery vs. Cultural Investment Holdings | Masterwork Machinery vs. Gome Telecom Equipment | Masterwork Machinery vs. Bus Online Co | Masterwork Machinery vs. Holitech Technology 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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