Correlation Between Yili Chuanning and Wuhan Yangtze
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Yili Chuanning and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Wuhan Yangtze.
Diversification Opportunities for Yili Chuanning and Wuhan Yangtze
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yili and Wuhan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Yili Chuanning and Wuhan Yangtze
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 0.45 times more return on investment than Wuhan Yangtze. However, Yili Chuanning Biotechnology is 2.21 times less risky than Wuhan Yangtze. It trades about -0.39 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about -0.36 per unit of risk. If you would invest 1,264 in Yili Chuanning Biotechnology on October 16, 2024 and sell it today you would lose (137.00) from holding Yili Chuanning Biotechnology or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Yili Chuanning Biote |
| Wuhan Yangtze Commun |
Yili Chuanning and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Wuhan Yangtze
The main advantage of trading using opposite Yili Chuanning and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze'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 |
| Wuhan Yangtze vs. Pengxin International Mining | Wuhan Yangtze vs. Chenzhou Jingui Silver | Wuhan Yangtze vs. Jinling Hotel Corp | Wuhan Yangtze vs. Hainan Mining 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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