Correlation Between Yili Chuanning and Liuzhou Chemical
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Yili Chuanning and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Liuzhou Chemical.
Diversification Opportunities for Yili Chuanning and Liuzhou Chemical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yili and Liuzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Yili Chuanning and Liuzhou Chemical
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 1.26 times more return on investment than Liuzhou Chemical. However, Yili Chuanning is 1.26 times more volatile than Liuzhou Chemical Industry. It trades about 0.04 of its potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.0 per unit of risk. If you would invest 981.00 in Yili Chuanning Biotechnology on September 3, 2024 and sell it today you would earn a total of 340.00 from holding Yili Chuanning Biotechnology or generate 34.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.9% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Liuzhou Chemical Industry
Performance |
| Timeline |
| Yili Chuanning Biote |
| Liuzhou Chemical Industry |
Yili Chuanning and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Liuzhou Chemical
The main advantage of trading using opposite Yili Chuanning and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| Yili Chuanning vs. Chengdu Kanghua Biological | Yili Chuanning vs. Beijing Wantai Biological | Yili Chuanning vs. Suzhou Novoprotein Scientific | Yili Chuanning vs. Aluminum Corp of |
| Liuzhou Chemical vs. Ye Chiu Metal | Liuzhou Chemical vs. Xinjiang Baodi Mining | Liuzhou Chemical vs. Anhui Transport Consulting | Liuzhou Chemical vs. Hengli Industrial Development |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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