Correlation Between Yingde Greatchem and 5I5j Holding
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and 5I5j Holding Group, you can compare the effects of market volatilities on Yingde Greatchem and 5I5j Holding 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 Yingde Greatchem with a short position of 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and 5I5j Holding.
Diversification Opportunities for Yingde Greatchem and 5I5j Holding
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yingde and 5I5j is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and 5I5j Holding go up and down completely randomly.
Pair Corralation between Yingde Greatchem and 5I5j Holding
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 0.95 times more return on investment than 5I5j Holding. However, Yingde Greatchem Chemicals is 1.05 times less risky than 5I5j Holding. It trades about -0.12 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about -0.33 per unit of risk. If you would invest 2,614 in Yingde Greatchem Chemicals on October 17, 2024 and sell it today you would lose (180.00) from holding Yingde Greatchem Chemicals or give up 6.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. 5I5j Holding Group
Performance |
| Timeline |
| Yingde Greatchem Che |
| 5I5j Holding Group |
Yingde Greatchem and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and 5I5j Holding
The main advantage of trading using opposite Yingde Greatchem and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.| Yingde Greatchem vs. Sportsoul Co Ltd | Yingde Greatchem vs. Tsingtao Brewery Co | Yingde Greatchem vs. Sanbo Hospital Management | Yingde Greatchem vs. Beijing Yanjing Brewery |
| 5I5j Holding vs. Fiberhome Telecommunication Technologies | 5I5j Holding vs. Yingde Greatchem Chemicals | 5I5j Holding vs. Hubei Xingfa Chemicals | 5I5j Holding vs. Dymatic Chemicals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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