Correlation Between Yili Chuanning and Arcutis Biotherapeutics
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Arcutis Biotherapeutics, you can compare the effects of market volatilities on Yili Chuanning and Arcutis Biotherapeutics 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 Arcutis Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Arcutis Biotherapeutics.
Diversification Opportunities for Yili Chuanning and Arcutis Biotherapeutics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yili and Arcutis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Arcutis Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcutis Biotherapeutics 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 Arcutis Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcutis Biotherapeutics has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Arcutis Biotherapeutics go up and down completely randomly.
Pair Corralation between Yili Chuanning and Arcutis Biotherapeutics
Assuming the 90 days trading horizon Yili Chuanning is expected to generate 1.18 times less return on investment than Arcutis Biotherapeutics. But when comparing it to its historical volatility, Yili Chuanning Biotechnology is 1.81 times less risky than Arcutis Biotherapeutics. It trades about 0.04 of its potential returns per unit of risk. Arcutis Biotherapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,389 in Arcutis Biotherapeutics on December 4, 2024 and sell it today you would lose (8.00) from holding Arcutis Biotherapeutics or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.98% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Arcutis Biotherapeutics
Performance |
| Timeline |
| Yili Chuanning Biote |
| Arcutis Biotherapeutics |
Yili Chuanning and Arcutis Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Arcutis Biotherapeutics
The main advantage of trading using opposite Yili Chuanning and Arcutis Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Arcutis Biotherapeutics 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 Arcutis Biotherapeutics will offset losses from the drop in Arcutis Biotherapeutics' long position.| Yili Chuanning vs. Guosheng Financial Holding | ||
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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