Correlation Between Yili Chuanning and Guangdong Brandmax
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Yili Chuanning and Guangdong Brandmax 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 Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Guangdong Brandmax.
Diversification Opportunities for Yili Chuanning and Guangdong Brandmax
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yili and Guangdong is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Yili Chuanning and Guangdong Brandmax
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to under-perform the Guangdong Brandmax. But the stock apears to be less risky and, when comparing its historical volatility, Yili Chuanning Biotechnology is 1.67 times less risky than Guangdong Brandmax. The stock trades about -0.22 of its potential returns per unit of risk. The Guangdong Brandmax Marketing is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 818.00 in Guangdong Brandmax Marketing on September 5, 2024 and sell it today you would earn a total of 165.00 from holding Guangdong Brandmax Marketing or generate 20.17% 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. Guangdong Brandmax Marketing
Performance |
| Timeline |
| Yili Chuanning Biote |
| Guangdong Brandmax |
Yili Chuanning and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Guangdong Brandmax
The main advantage of trading using opposite Yili Chuanning and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Guangdong Brandmax 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 Guangdong Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| Yili Chuanning vs. Kweichow Moutai Co | Yili Chuanning vs. Shenzhen Mindray Bio Medical | Yili Chuanning vs. Jiangsu Pacific Quartz | Yili Chuanning vs. G bits Network Technology |
| Guangdong Brandmax vs. Pengxin International Mining | Guangdong Brandmax vs. Guocheng Mining Co | Guangdong Brandmax vs. Liaoning Chengda Biotechnology | Guangdong Brandmax vs. Yili Chuanning Biotechnology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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