Correlation Between Fujian Wanchen and Yili Chuanning
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Fujian Wanchen 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 Fujian Wanchen with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Yili Chuanning.
Diversification Opportunities for Fujian Wanchen and Yili Chuanning
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Yili is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology 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 Fujian Wanchen 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 Fujian Wanchen Biotechnology 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 Fujian Wanchen i.e., Fujian Wanchen and Yili Chuanning go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Yili Chuanning
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 2.11 times more return on investment than Yili Chuanning. However, Fujian Wanchen is 2.11 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 -0.39 per unit of risk. If you would invest 7,922 in Fujian Wanchen Biotechnology on October 16, 2024 and sell it today you would lose (187.00) from holding Fujian Wanchen Biotechnology or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Yili Chuanning Biote |
Fujian Wanchen and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Yili Chuanning
The main advantage of trading using opposite Fujian Wanchen and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen 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.| Fujian Wanchen vs. Haima Automobile Group | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Wuhan Yangtze Communication | Fujian Wanchen vs. Sunwave Communications Co |
| Yili Chuanning vs. State Grid InformationCommunication | Yili Chuanning vs. East Money Information | Yili Chuanning vs. Shenzhen SDG Information | Yili Chuanning vs. Guilin Seamild Foods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |