Correlation Between Yili Chuanning and Hainan Mining
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Hainan Mining Co, you can compare the effects of market volatilities on Yili Chuanning and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Hainan Mining.
Diversification Opportunities for Yili Chuanning and Hainan Mining
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yili and Hainan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Hainan Mining go up and down completely randomly.
Pair Corralation between Yili Chuanning and Hainan Mining
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 0.94 times more return on investment than Hainan Mining. However, Yili Chuanning Biotechnology is 1.07 times less risky than Hainan Mining. It trades about -0.02 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.15 per unit of risk. If you would invest 1,221 in Yili Chuanning Biotechnology on October 29, 2024 and sell it today you would lose (13.00) from holding Yili Chuanning Biotechnology or give up 1.06% 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. Hainan Mining Co
Performance |
| Timeline |
| Yili Chuanning Biote |
| Hainan Mining |
Yili Chuanning and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Hainan Mining
The main advantage of trading using opposite Yili Chuanning and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Yili Chuanning vs. Chinese Universe Publishing | Yili Chuanning vs. Shandong Publishing Media | Yili Chuanning vs. Jiangsu Phoenix Publishing | Yili Chuanning vs. Time Publishing and |
| Hainan Mining vs. PKU HealthCare Corp | Hainan Mining vs. Chongqing Changan Automobile | Hainan Mining vs. Heren Health Co | Hainan Mining vs. Dongfeng Automobile 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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