Correlation Between Malion New and Yili Chuanning
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By analyzing existing cross correlation between Malion New Materials and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Malion New and Yili Chuanning 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 Malion New with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Yili Chuanning.
Diversification Opportunities for Malion New and Yili Chuanning
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Malion and Yili is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote and Malion New 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 Malion New Materials are associated (or correlated) with Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Malion New i.e., Malion New and Yili Chuanning go up and down completely randomly.
Pair Corralation between Malion New and Yili Chuanning
Assuming the 90 days trading horizon Malion New Materials is expected to generate 1.41 times more return on investment than Yili Chuanning. However, Malion New is 1.41 times more volatile than Yili Chuanning Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about -0.04 per unit of risk. If you would invest 806.00 in Malion New Materials on August 30, 2024 and sell it today you would earn a total of 5.00 from holding Malion New Materials or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Malion New Materials |
| Yili Chuanning Biote |
Malion New and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Yili Chuanning
The main advantage of trading using opposite Malion New and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Malion New vs. Xilinmen Furniture Co | Malion New vs. Beijing Jiaman Dress | Malion New vs. Beijing Yanjing Brewery | Malion New vs. Nanjing OLO Home |
| Yili Chuanning vs. Industrial and Commercial | Yili Chuanning vs. China Construction Bank | Yili Chuanning vs. Agricultural Bank of | Yili Chuanning vs. Bank of China |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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