Correlation Between Yunnan Xiyi and Liaoning Chengda
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Yunnan Xiyi and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Liaoning Chengda.
Diversification Opportunities for Yunnan Xiyi and Liaoning Chengda
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Liaoning is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Liaoning Chengda
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to generate 1.53 times more return on investment than Liaoning Chengda. However, Yunnan Xiyi is 1.53 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.02 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Liaoning Chengda Bio |
Yunnan Xiyi and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Liaoning Chengda
The main advantage of trading using opposite Yunnan Xiyi and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda'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 |
| Liaoning Chengda vs. Chengdu Kanghua Biological | Liaoning Chengda vs. Beijing Wantai Biological | Liaoning Chengda vs. Suzhou Novoprotein Scientific | Liaoning Chengda 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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