Correlation Between YLZ Information and China State
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By analyzing existing cross correlation between YLZ Information Tech and China State Construction, you can compare the effects of market volatilities on YLZ Information and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and China State.
Diversification Opportunities for YLZ Information and China State
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between YLZ and China is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of YLZ Information i.e., YLZ Information and China State go up and down completely randomly.
Pair Corralation between YLZ Information and China State
Assuming the 90 days trading horizon YLZ Information Tech is expected to under-perform the China State. In addition to that, YLZ Information is 2.17 times more volatile than China State Construction. It trades about -0.01 of its total potential returns per unit of risk. China State Construction is currently generating about 0.0 per unit of volatility. If you would invest 576.00 in China State Construction on November 27, 2024 and sell it today you would lose (23.00) from holding China State Construction or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YLZ Information Tech vs. China State Construction
Performance |
| Timeline |
| YLZ Information Tech |
| China State Construction |
YLZ Information and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and China State
The main advantage of trading using opposite YLZ Information and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| YLZ Information vs. Holitech Technology Co | YLZ Information vs. Gome Telecom Equipment | YLZ Information vs. Cultural Investment Holdings | YLZ Information vs. Danhua Chemical Technology |
| China State vs. TianJin 712 Communication | China State vs. INKON Life Technology | China State vs. Juneyao Airlines | China State vs. Elec Tech International 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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