Correlation Between Sichuan Yahua and Xiangcai
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Xiangcai Co, you can compare the effects of market volatilities on Sichuan Yahua and Xiangcai 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 Xiangcai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Xiangcai.
Diversification Opportunities for Sichuan Yahua and Xiangcai
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sichuan and Xiangcai is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Xiangcai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangcai 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 Xiangcai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangcai has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Xiangcai go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Xiangcai
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.34 times more return on investment than Xiangcai. However, Sichuan Yahua is 1.34 times more volatile than Xiangcai Co. It trades about 0.03 of its potential returns per unit of risk. Xiangcai Co is currently generating about -0.17 per unit of risk. If you would invest 1,197 in Sichuan Yahua Industrial on November 30, 2024 and sell it today you would earn a total of 21.00 from holding Sichuan Yahua Industrial or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Xiangcai Co
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Xiangcai |
Sichuan Yahua and Xiangcai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Xiangcai
The main advantage of trading using opposite Sichuan Yahua and Xiangcai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Xiangcai 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 Xiangcai will offset losses from the drop in Xiangcai's long position.| Sichuan Yahua vs. Dazhong Transportation Group | Sichuan Yahua vs. Longjian Road Bridge | Sichuan Yahua vs. Sichuan Fulin Transportation | Sichuan Yahua vs. Zhengping RoadBridge Constr |
| Xiangcai vs. HUAQIN TECHNOLOGY LTD | Xiangcai vs. Chengtun Mining Group | Xiangcai vs. Zhengzhou Coal Mining | Xiangcai vs. Sinofibers Technology Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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