Correlation Between YLZ Information and Guangdong Wens
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By analyzing existing cross correlation between YLZ Information Tech and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on YLZ Information and Guangdong Wens 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 YLZ Information with a short position of Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and Guangdong Wens.
Diversification Opportunities for YLZ Information and Guangdong Wens
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YLZ and Guangdong is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff and YLZ Information 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 YLZ Information Tech are associated (or correlated) with Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of YLZ Information i.e., YLZ Information and Guangdong Wens go up and down completely randomly.
Pair Corralation between YLZ Information and Guangdong Wens
Assuming the 90 days trading horizon YLZ Information Tech is expected to under-perform the Guangdong Wens. In addition to that, YLZ Information is 2.16 times more volatile than Guangdong Wens Foodstuff. It trades about -0.03 of its total potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about 0.0 per unit of volatility. If you would invest 1,850 in Guangdong Wens Foodstuff on September 14, 2024 and sell it today you would lose (106.00) from holding Guangdong Wens Foodstuff or give up 5.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
YLZ Information Tech vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| YLZ Information Tech |
| Guangdong Wens Foodstuff |
YLZ Information and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and Guangdong Wens
The main advantage of trading using opposite YLZ Information and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| YLZ Information vs. Ming Yang Smart | YLZ Information vs. 159681 | YLZ Information vs. 159005 | YLZ Information vs. Loctek Ergonomic Technology |
| Guangdong Wens vs. Nanjing Putian Telecommunications | Guangdong Wens vs. Tianjin Realty Development | Guangdong Wens vs. Kangyue Technology Co | Guangdong Wens vs. Shenzhen Hifuture Electric |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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