Correlation Between 159005 and Yuan Longping
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By analyzing existing cross correlation between 159005 and Yuan Longping High tech, you can compare the effects of market volatilities on 159005 and Yuan Longping 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 159005 with a short position of Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Yuan Longping.
Diversification Opportunities for 159005 and Yuan Longping
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Yuan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High and 159005 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 159005 are associated (or correlated) with Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of 159005 i.e., 159005 and Yuan Longping go up and down completely randomly.
Pair Corralation between 159005 and Yuan Longping
Assuming the 90 days trading horizon 159005 is expected to generate 0.01 times more return on investment than Yuan Longping. However, 159005 is 69.26 times less risky than Yuan Longping. It trades about 0.19 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.05 per unit of risk. If you would invest 9,869 in 159005 on September 4, 2024 and sell it today you would earn a total of 131.00 from holding 159005 or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
159005 vs. Yuan Longping High tech
Performance |
| Timeline |
| 159005 |
| Yuan Longping High |
159005 and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Yuan Longping
The main advantage of trading using opposite 159005 and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.The idea behind 159005 and Yuan Longping High tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yuan Longping vs. Agricultural Bank of | Yuan Longping vs. Industrial and Commercial | Yuan Longping vs. Bank of China | Yuan Longping vs. China Construction Bank |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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