Correlation Between Yili Chuanning and Shanghai Shibei
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on Yili Chuanning and Shanghai Shibei 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 Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Shanghai Shibei.
Diversification Opportunities for Yili Chuanning and Shanghai Shibei
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yili and Shanghai is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi 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 Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Shanghai Shibei go up and down completely randomly.
Pair Corralation between Yili Chuanning and Shanghai Shibei
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 0.36 times more return on investment than Shanghai Shibei. However, Yili Chuanning Biotechnology is 2.76 times less risky than Shanghai Shibei. It trades about -0.51 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about -0.21 per unit of risk. If you would invest 1,361 in Yili Chuanning Biotechnology on October 12, 2024 and sell it today you would lose (215.00) from holding Yili Chuanning Biotechnology or give up 15.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| Yili Chuanning Biote |
| Shanghai Shibei Hi |
Yili Chuanning and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Shanghai Shibei
The main advantage of trading using opposite Yili Chuanning and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Shanghai Shibei 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 Shanghai Shibei will offset losses from the drop in Shanghai Shibei's long position.| Yili Chuanning vs. China Mobile Limited | Yili Chuanning vs. Dongfeng Automobile Co | Yili Chuanning vs. Shaanxi Meineng Clean | Yili Chuanning vs. Shenzhen Topway Video |
| Shanghai Shibei vs. Ming Yang Smart | Shanghai Shibei vs. 159681 | Shanghai Shibei vs. 159005 | Shanghai Shibei 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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