Correlation Between Yili Chuanning and Baoshan Iron
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Baoshan Iron Steel, you can compare the effects of market volatilities on Yili Chuanning and Baoshan Iron 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 Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Baoshan Iron.
Diversification Opportunities for Yili Chuanning and Baoshan Iron
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yili and Baoshan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel 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 Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Baoshan Iron go up and down completely randomly.
Pair Corralation between Yili Chuanning and Baoshan Iron
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 1.76 times more return on investment than Baoshan Iron. However, Yili Chuanning is 1.76 times more volatile than Baoshan Iron Steel. It trades about 0.03 of its potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.02 per unit of risk. If you would invest 894.00 in Yili Chuanning Biotechnology on October 16, 2024 and sell it today you would earn a total of 233.00 from holding Yili Chuanning Biotechnology or generate 26.06% 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. Baoshan Iron Steel
Performance |
| Timeline |
| Yili Chuanning Biote |
| Baoshan Iron Steel |
Yili Chuanning and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Baoshan Iron
The main advantage of trading using opposite Yili Chuanning and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron'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 |
| Baoshan Iron vs. Changchun BCHT Biotechnology | Baoshan Iron vs. Yili Chuanning Biotechnology | Baoshan Iron vs. MayAir Technology Co | Baoshan Iron vs. Liaoning Chengda 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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