Correlation Between Yili Chuanning and Loongson Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yili Chuanning Biotechnology and Loongson Technology Corp, you can compare the effects of market volatilities on Yili Chuanning and Loongson Technology 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 Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Loongson Technology.
Diversification Opportunities for Yili Chuanning and Loongson Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yili and Loongson is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Loongson Technology go up and down completely randomly.
Pair Corralation between Yili Chuanning and Loongson Technology
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to under-perform the Loongson Technology. But the stock apears to be less risky and, when comparing its historical volatility, Yili Chuanning Biotechnology is 1.56 times less risky than Loongson Technology. The stock trades about -0.08 of its potential returns per unit of risk. The Loongson Technology Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 13,762 in Loongson Technology Corp on September 1, 2024 and sell it today you would earn a total of 2,758 from holding Loongson Technology Corp or generate 20.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Loongson Technology Corp
Performance |
| Timeline |
| Yili Chuanning Biote |
| Loongson Technology Corp |
Yili Chuanning and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Loongson Technology
The main advantage of trading using opposite Yili Chuanning and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| Yili Chuanning vs. Agricultural Bank of | Yili Chuanning vs. GRG Banking Equipment | Yili Chuanning vs. Fiberhome Telecommunication Technologies | Yili Chuanning vs. Tongyu Communication |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |