Correlation Between Yili Chuanning and Shaanxi Meineng
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Yili Chuanning and Shaanxi Meineng 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 Yili Chuanning with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Shaanxi Meineng.
Diversification Opportunities for Yili Chuanning and Shaanxi Meineng
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yili and Shaanxi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Yili Chuanning 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 Yili Chuanning Biotechnology are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Yili Chuanning and Shaanxi Meineng
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to under-perform the Shaanxi Meineng. But the stock apears to be less risky and, when comparing its historical volatility, Yili Chuanning Biotechnology is 1.12 times less risky than Shaanxi Meineng. The stock trades about -0.31 of its potential returns per unit of risk. The Shaanxi Meineng Clean is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,378 in Shaanxi Meineng Clean on September 12, 2024 and sell it today you would lose (9.00) from holding Shaanxi Meineng Clean or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Yili Chuanning Biote |
| Shaanxi Meineng Clean |
Yili Chuanning and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Shaanxi Meineng
The main advantage of trading using opposite Yili Chuanning and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Yili Chuanning vs. Cultural Investment Holdings | Yili Chuanning vs. Gome Telecom Equipment | Yili Chuanning vs. Holitech Technology Co | Yili Chuanning vs. Zotye Automobile Co |
| Shaanxi Meineng vs. Gansu Jiu Steel | Shaanxi Meineng vs. Shandong Mining Machinery | Shaanxi Meineng vs. Aba Chemicals Corp | Shaanxi Meineng 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 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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