Correlation Between Yili Chuanning and Guangdong Liantai
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Yili Chuanning and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Guangdong Liantai.
Diversification Opportunities for Yili Chuanning and Guangdong Liantai
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yili and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Yili Chuanning and Guangdong Liantai
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 1.55 times more return on investment than Guangdong Liantai. However, Yili Chuanning is 1.55 times more volatile than Guangdong Liantai Environmental. It trades about 0.04 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.02 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. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Yili Chuanning Biote |
| Guangdong Liantai |
Yili Chuanning and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Guangdong Liantai
The main advantage of trading using opposite Yili Chuanning and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai'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 |
| Guangdong Liantai vs. Touchstone International Medical | Guangdong Liantai vs. Gansu Jiu Steel | Guangdong Liantai vs. Hubei Xingfa Chemicals | Guangdong Liantai vs. Fujian Nanwang Environment |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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