Correlation Between Yunnan Xiyi and Ningbo MedicalSystem
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Yunnan Xiyi and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Ningbo MedicalSystem.
Diversification Opportunities for Yunnan Xiyi and Ningbo MedicalSystem
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Ningbo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Ningbo MedicalSystem
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to generate 1.04 times more return on investment than Ningbo MedicalSystem. However, Yunnan Xiyi is 1.04 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.01 per unit of risk. If you would invest 1,118 in Yunnan Xiyi Industrial on September 3, 2024 and sell it today you would earn a total of 21.00 from holding Yunnan Xiyi Industrial or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Ningbo MedicalSystem |
Yunnan Xiyi and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Ningbo MedicalSystem
The main advantage of trading using opposite Yunnan Xiyi and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem'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 |
| Ningbo MedicalSystem vs. Chengdu Kanghua Biological | Ningbo MedicalSystem vs. Beijing Wantai Biological | Ningbo MedicalSystem vs. Suzhou Novoprotein Scientific | Ningbo MedicalSystem vs. Aluminum Corp of |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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