Correlation Between Yili Chuanning and Sinomach General
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Sinomach General Machinery, you can compare the effects of market volatilities on Yili Chuanning and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Sinomach General.
Diversification Opportunities for Yili Chuanning and Sinomach General
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yili and Sinomach is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Sinomach General go up and down completely randomly.
Pair Corralation between Yili Chuanning and Sinomach General
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 0.79 times more return on investment than Sinomach General. However, Yili Chuanning Biotechnology is 1.27 times less risky than Sinomach General. It trades about -0.09 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.07 per unit of risk. If you would invest 1,300 in Yili Chuanning Biotechnology on October 26, 2024 and sell it today you would lose (91.00) from holding Yili Chuanning Biotechnology or give up 7.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Sinomach General Machinery
Performance |
| Timeline |
| Yili Chuanning Biote |
| Sinomach General Mac |
Yili Chuanning and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Sinomach General
The main advantage of trading using opposite Yili Chuanning and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Yili Chuanning vs. Beijing Kingsoft Office | Yili Chuanning vs. Zoy Home Furnishing | Yili Chuanning vs. Fiberhome Telecommunication Technologies | Yili Chuanning vs. Xiamen Goldenhome Co |
| Sinomach General vs. Ming Yang Smart | Sinomach General vs. 159681 | Sinomach General vs. 159005 | Sinomach General vs. Loctek Ergonomic Technology |
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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