Correlation Between YLZ Information and Grinm Advanced
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By analyzing existing cross correlation between YLZ Information Tech and Grinm Advanced Materials, you can compare the effects of market volatilities on YLZ Information and Grinm Advanced 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 Grinm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and Grinm Advanced.
Diversification Opportunities for YLZ Information and Grinm Advanced
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YLZ and Grinm is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech and Grinm Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grinm Advanced Materials 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 Grinm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grinm Advanced Materials has no effect on the direction of YLZ Information i.e., YLZ Information and Grinm Advanced go up and down completely randomly.
Pair Corralation between YLZ Information and Grinm Advanced
Assuming the 90 days trading horizon YLZ Information Tech is expected to under-perform the Grinm Advanced. But the stock apears to be less risky and, when comparing its historical volatility, YLZ Information Tech is 1.93 times less risky than Grinm Advanced. The stock trades about -0.03 of its potential returns per unit of risk. The Grinm Advanced Materials is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 1,114 in Grinm Advanced Materials on August 31, 2024 and sell it today you would earn a total of 929.00 from holding Grinm Advanced Materials or generate 83.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YLZ Information Tech vs. Grinm Advanced Materials
Performance |
| Timeline |
| YLZ Information Tech |
| Grinm Advanced Materials |
YLZ Information and Grinm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and Grinm Advanced
The main advantage of trading using opposite YLZ Information and Grinm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information position performs unexpectedly, Grinm Advanced 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 Grinm Advanced will offset losses from the drop in Grinm Advanced's long position.| YLZ Information vs. Kweichow Moutai Co | YLZ Information vs. NAURA Technology Group | YLZ Information vs. APT Medical | YLZ Information vs. Contemporary Amperex Technology |
| Grinm Advanced vs. Kweichow Moutai Co | Grinm Advanced vs. NAURA Technology Group | Grinm Advanced vs. APT Medical | Grinm Advanced vs. Contemporary Amperex Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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