Correlation Between Yili Chuanning and Malion New
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Malion New Materials, you can compare the effects of market volatilities on Yili Chuanning and Malion New 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 Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Malion New.
Diversification Opportunities for Yili Chuanning and Malion New
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yili and Malion is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Malion New go up and down completely randomly.
Pair Corralation between Yili Chuanning and Malion New
Assuming the 90 days trading horizon Yili Chuanning is expected to generate 5.8 times less return on investment than Malion New. But when comparing it to its historical volatility, Yili Chuanning Biotechnology is 1.11 times less risky than Malion New. It trades about 0.02 of its potential returns per unit of risk. Malion New Materials is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 732.00 in Malion New Materials on September 1, 2024 and sell it today you would earn a total of 272.00 from holding Malion New Materials or generate 37.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Malion New Materials
Performance |
| Timeline |
| Yili Chuanning Biote |
| Malion New Materials |
Yili Chuanning and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Malion New
The main advantage of trading using opposite Yili Chuanning and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.| Yili Chuanning vs. Agricultural Bank of | Yili Chuanning vs. GRG Banking Equipment | Yili Chuanning vs. Fiberhome Telecommunication Technologies | Yili Chuanning vs. Tongyu Communication |
| Malion New vs. Leaguer Shenzhen MicroElectronics | Malion New vs. StarPower Semiconductor | Malion New vs. Integrated Electronic Systems | Malion New vs. Epoxy Base Electronic |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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