Correlation Between Sichuan Yahua and Yunnan Xiyi
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Yunnan Xiyi.
Diversification Opportunities for Sichuan Yahua and Yunnan Xiyi
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Yunnan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial 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 Sichuan Yahua 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 Sichuan Yahua Industrial 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 Sichuan Yahua i.e., Sichuan Yahua and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Yunnan Xiyi
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to under-perform the Yunnan Xiyi. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Yahua Industrial is 1.36 times less risky than Yunnan Xiyi. The stock trades about -0.03 of its potential returns per unit of risk. The Yunnan Xiyi Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,353 in Yunnan Xiyi Industrial on November 28, 2024 and sell it today you would earn a total of 1,287 from holding Yunnan Xiyi Industrial or generate 95.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Yunnan Xiyi Industrial |
Sichuan Yahua and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Yunnan Xiyi
The main advantage of trading using opposite Sichuan Yahua and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.| Sichuan Yahua vs. Chinese Universe Publishing | Sichuan Yahua vs. Tianjin Pengling Rubber | Sichuan Yahua vs. Qtone Education Group | Sichuan Yahua vs. Duzhe Publishing Media |
| Yunnan Xiyi vs. Anhui Jianghuai Automobile | Yunnan Xiyi vs. Xiangyang Automobile Bearing | Yunnan Xiyi vs. Dongfeng Automobile Co | Yunnan Xiyi vs. Shenzhen Kexin Communication |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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