Correlation Between Yili Chuanning and Beijing Yuanlong
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Beijing Yuanlong Yato, you can compare the effects of market volatilities on Yili Chuanning and Beijing Yuanlong 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 Beijing Yuanlong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Beijing Yuanlong.
Diversification Opportunities for Yili Chuanning and Beijing Yuanlong
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yili and Beijing is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Beijing Yuanlong Yato in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yuanlong Yato 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 Beijing Yuanlong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yuanlong Yato has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Beijing Yuanlong go up and down completely randomly.
Pair Corralation between Yili Chuanning and Beijing Yuanlong
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 0.8 times more return on investment than Beijing Yuanlong. However, Yili Chuanning Biotechnology is 1.25 times less risky than Beijing Yuanlong. It trades about 0.05 of its potential returns per unit of risk. Beijing Yuanlong Yato is currently generating about 0.01 per unit of risk. If you would invest 901.00 in Yili Chuanning Biotechnology on January 6, 2025 and sell it today you would earn a total of 428.00 from holding Yili Chuanning Biotechnology or generate 47.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Beijing Yuanlong Yato
Performance |
| Timeline |
| Yili Chuanning Biote |
| Beijing Yuanlong Yato |
Yili Chuanning and Beijing Yuanlong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Beijing Yuanlong
The main advantage of trading using opposite Yili Chuanning and Beijing Yuanlong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Beijing Yuanlong 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 Beijing Yuanlong will offset losses from the drop in Beijing Yuanlong's long position.| Yili Chuanning vs. Everjoy Health Group | Yili Chuanning vs. Rising Nonferrous Metals | Yili Chuanning vs. Uroica Mining Safety | Yili Chuanning vs. Sanbo Hospital Management |
| Beijing Yuanlong vs. Industrial and Commercial | Beijing Yuanlong vs. Agricultural Bank of | Beijing Yuanlong vs. China Construction Bank | Beijing Yuanlong 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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