Correlation Between Yankershop Food and Wuliangye Yibin
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By analyzing existing cross correlation between Yankershop Food Co and Wuliangye Yibin Co, you can compare the effects of market volatilities on Yankershop Food and Wuliangye Yibin 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 Yankershop Food with a short position of Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yankershop Food and Wuliangye Yibin.
Diversification Opportunities for Yankershop Food and Wuliangye Yibin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yankershop and Wuliangye is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Yankershop Food Co and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin and Yankershop Food 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 Yankershop Food Co are associated (or correlated) with Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of Yankershop Food i.e., Yankershop Food and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between Yankershop Food and Wuliangye Yibin
Assuming the 90 days trading horizon Yankershop Food Co is expected to generate 0.97 times more return on investment than Wuliangye Yibin. However, Yankershop Food Co is 1.03 times less risky than Wuliangye Yibin. It trades about 0.05 of its potential returns per unit of risk. Wuliangye Yibin Co is currently generating about 0.03 per unit of risk. If you would invest 4,598 in Yankershop Food Co on September 1, 2024 and sell it today you would earn a total of 583.00 from holding Yankershop Food Co or generate 12.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yankershop Food Co vs. Wuliangye Yibin Co
Performance |
| Timeline |
| Yankershop Food |
| Wuliangye Yibin |
Yankershop Food and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yankershop Food and Wuliangye Yibin
The main advantage of trading using opposite Yankershop Food and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yankershop Food position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin's long position.| Yankershop Food vs. Pengxin International Mining | Yankershop Food vs. Hainan Mining Co | Yankershop Food vs. Ye Chiu Metal | Yankershop Food vs. Shandong Mining Machinery |
| Wuliangye Yibin vs. Qinghaihuading Industrial Co | Wuliangye Yibin vs. Nanjing Putian Telecommunications | Wuliangye Yibin vs. Xiangyang Automobile Bearing | Wuliangye Yibin vs. Anhui Jianghuai Automobile |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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