Correlation Between Yunnan Xiyi and Sichuan Hebang
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Yunnan Xiyi and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Sichuan Hebang.
Diversification Opportunities for Yunnan Xiyi and Sichuan Hebang
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and Sichuan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Sichuan Hebang
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to generate 1.65 times more return on investment than Sichuan Hebang. However, Yunnan Xiyi is 1.65 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.06 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 1,373 in Yunnan Xiyi Industrial on September 14, 2024 and sell it today you would earn a total of 1,194 from holding Yunnan Xiyi Industrial or generate 86.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Sichuan Hebang Biote |
Yunnan Xiyi and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Sichuan Hebang
The main advantage of trading using opposite Yunnan Xiyi and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Yunnan Xiyi vs. BeiGene | Yunnan Xiyi vs. Kweichow Moutai Co | Yunnan Xiyi vs. Beijing Roborock Technology | Yunnan Xiyi vs. G bits Network Technology |
| Sichuan Hebang vs. Vanfund Urban Investment | Sichuan Hebang vs. Ping An Insurance | Sichuan Hebang vs. Yili Chuanning Biotechnology | Sichuan Hebang vs. Bloomage Biotechnology Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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