Correlation Between Yunnan Xiyi and China Sports
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and China Sports Industry, you can compare the effects of market volatilities on Yunnan Xiyi and China Sports 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 China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and China Sports.
Diversification Opportunities for Yunnan Xiyi and China Sports
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and China is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and China Sports go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and China Sports
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to generate 1.99 times more return on investment than China Sports. However, Yunnan Xiyi is 1.99 times more volatile than China Sports Industry. It trades about 0.09 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.15 per unit of risk. If you would invest 1,079 in Yunnan Xiyi Industrial on September 2, 2024 and sell it today you would earn a total of 60.00 from holding Yunnan Xiyi Industrial or generate 5.56% 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. China Sports Industry
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| China Sports Industry |
Yunnan Xiyi and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and China Sports
The main advantage of trading using opposite Yunnan Xiyi and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' long position.| Yunnan Xiyi vs. China Publishing Media | Yunnan Xiyi vs. Sichuan Hebang Biotechnology | Yunnan Xiyi vs. Zhejiang Publishing Media | Yunnan Xiyi vs. Jiangsu GDK Biotechnology |
| China Sports vs. Huitong Construction Group | China Sports vs. Shaanxi Construction Machinery | China Sports vs. Long Yuan Construction | China Sports vs. China Life Insurance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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