Correlation Between Yili Chuanning and Xinjiang Baodi
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Yili Chuanning and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Xinjiang Baodi.
Diversification Opportunities for Yili Chuanning and Xinjiang Baodi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yili and Xinjiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Yili Chuanning and Xinjiang Baodi
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 1.08 times more return on investment than Xinjiang Baodi. However, Yili Chuanning is 1.08 times more volatile than Xinjiang Baodi Mining. It trades about 0.04 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.02 per unit of risk. If you would invest 981.00 in Yili Chuanning Biotechnology on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Yili Chuanning Biotechnology or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 89.96% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Yili Chuanning Biote |
| Xinjiang Baodi Mining |
Yili Chuanning and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Xinjiang Baodi
The main advantage of trading using opposite Yili Chuanning and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Yili Chuanning vs. Yonyou Auto Information | Yili Chuanning vs. Dhc Software Co | Yili Chuanning vs. Dareway Software Co | Yili Chuanning vs. Emdoor Information Co |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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