Correlation Between Yili Chuanning and Fujian Wanchen
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Yili Chuanning and Fujian Wanchen 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 Fujian Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Fujian Wanchen.
Diversification Opportunities for Yili Chuanning and Fujian Wanchen
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yili and Fujian is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Fujian Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Yili Chuanning and Fujian Wanchen
Assuming the 90 days trading horizon Yili Chuanning is expected to generate 5.06 times less return on investment than Fujian Wanchen. But when comparing it to its historical volatility, Yili Chuanning Biotechnology is 1.41 times less risky than Fujian Wanchen. It trades about 0.03 of its potential returns per unit of risk. Fujian Wanchen Biotechnology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,270 in Fujian Wanchen Biotechnology on October 16, 2024 and sell it today you would earn a total of 6,465 from holding Fujian Wanchen Biotechnology or generate 509.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Yili Chuanning Biote |
| Fujian Wanchen Biote |
Yili Chuanning and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Fujian Wanchen
The main advantage of trading using opposite Yili Chuanning and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Fujian Wanchen 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 Fujian Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Yili Chuanning vs. State Grid InformationCommunication | Yili Chuanning vs. East Money Information | Yili Chuanning vs. Shenzhen SDG Information | Yili Chuanning vs. Guilin Seamild Foods |
| Fujian Wanchen vs. Haima Automobile Group | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Wuhan Yangtze Communication | Fujian Wanchen vs. Sunwave Communications Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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