Correlation Between Porton Fine and Yuan Longping
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By analyzing existing cross correlation between Porton Fine Chemicals and Yuan Longping High tech, you can compare the effects of market volatilities on Porton Fine 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 Porton Fine with a short position of Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Yuan Longping.
Diversification Opportunities for Porton Fine and Yuan Longping
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Porton and Yuan is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals 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 Porton Fine 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 Porton Fine Chemicals 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 Porton Fine i.e., Porton Fine and Yuan Longping go up and down completely randomly.
Pair Corralation between Porton Fine and Yuan Longping
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to under-perform the Yuan Longping. In addition to that, Porton Fine is 1.83 times more volatile than Yuan Longping High tech. It trades about -0.02 of its total potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.04 per unit of volatility. If you would invest 1,506 in Yuan Longping High tech on August 31, 2024 and sell it today you would lose (397.00) from holding Yuan Longping High tech or give up 26.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porton Fine Chemicals vs. Yuan Longping High tech
Performance |
| Timeline |
| Porton Fine Chemicals |
| Yuan Longping High |
Porton Fine and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Yuan Longping
The main advantage of trading using opposite Porton Fine and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine 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.| Porton Fine vs. PetroChina Co Ltd | Porton Fine vs. China Mobile Limited | Porton Fine vs. Ping An Insurance | Porton Fine vs. China Petroleum Chemical |
| Yuan Longping vs. Shanghai Yaoji Playing | Yuan Longping vs. Xiandai Investment Co | Yuan Longping vs. Sportsoul Co Ltd | Yuan Longping vs. Henan Shuanghui Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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