Correlation Between Aba Chemicals and YLZ Information
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By analyzing existing cross correlation between Aba Chemicals Corp and YLZ Information Tech, you can compare the effects of market volatilities on Aba Chemicals and YLZ Information 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 Aba Chemicals with a short position of YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and YLZ Information.
Diversification Opportunities for Aba Chemicals and YLZ Information
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and YLZ is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information Tech and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and YLZ Information go up and down completely randomly.
Pair Corralation between Aba Chemicals and YLZ Information
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the YLZ Information. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.11 times less risky than YLZ Information. The stock trades about -0.01 of its potential returns per unit of risk. The YLZ Information Tech is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 620.00 in YLZ Information Tech on September 12, 2024 and sell it today you would lose (230.00) from holding YLZ Information Tech or give up 37.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. YLZ Information Tech
Performance |
| Timeline |
| Aba Chemicals Corp |
| YLZ Information Tech |
Aba Chemicals and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and YLZ Information
The main advantage of trading using opposite Aba Chemicals and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, YLZ Information 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 YLZ Information will offset losses from the drop in YLZ Information's long position.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| YLZ Information vs. Gansu Jiu Steel | YLZ Information vs. Shandong Mining Machinery | YLZ Information vs. Aba Chemicals Corp | YLZ Information vs. BlueFocus Communication Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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