Correlation Between Huasi Agricultural and Yunnan Xiyi
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By analyzing existing cross correlation between Huasi Agricultural Development and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Huasi Agricultural and Yunnan Xiyi 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 Huasi Agricultural with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Yunnan Xiyi.
Diversification Opportunities for Huasi Agricultural and Yunnan Xiyi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huasi and Yunnan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial and Huasi Agricultural 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 Huasi Agricultural Development are associated (or correlated) with Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Huasi Agricultural i.e., Huasi Agricultural and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Yunnan Xiyi
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 1.19 times more return on investment than Yunnan Xiyi. However, Huasi Agricultural is 1.19 times more volatile than Yunnan Xiyi Industrial. It trades about 0.01 of its potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about -0.01 per unit of risk. If you would invest 481.00 in Huasi Agricultural Development on September 3, 2024 and sell it today you would lose (44.00) from holding Huasi Agricultural Development or give up 9.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Huasi Agricultural |
| Yunnan Xiyi Industrial |
Huasi Agricultural and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Yunnan Xiyi
The main advantage of trading using opposite Huasi Agricultural and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| Huasi Agricultural vs. PetroChina Co Ltd | Huasi Agricultural vs. China Mobile Limited | Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. China Life Insurance |
| Yunnan Xiyi vs. Anhui Huilong Agricultural | Yunnan Xiyi vs. Huasi Agricultural Development | Yunnan Xiyi vs. Shantui Construction Machinery | Yunnan Xiyi vs. Sinomach General Machinery |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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