Correlation Between Dongfeng Automobile and Yili Chuanning
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By analyzing existing cross correlation between Dongfeng Automobile Co and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Dongfeng Automobile and Yili Chuanning 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 Dongfeng Automobile with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Yili Chuanning.
Diversification Opportunities for Dongfeng Automobile and Yili Chuanning
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongfeng and Yili is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote and Dongfeng Automobile 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 Dongfeng Automobile Co are associated (or correlated) with Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Yili Chuanning go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Yili Chuanning
Assuming the 90 days trading horizon Dongfeng Automobile is expected to generate 1.32 times less return on investment than Yili Chuanning. But when comparing it to its historical volatility, Dongfeng Automobile Co is 1.03 times less risky than Yili Chuanning. It trades about 0.02 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 894.00 in Yili Chuanning Biotechnology on October 12, 2024 and sell it today you would earn a total of 252.00 from holding Yili Chuanning Biotechnology or generate 28.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Dongfeng Automobile |
| Yili Chuanning Biote |
Dongfeng Automobile and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Yili Chuanning
The main advantage of trading using opposite Dongfeng Automobile and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Dongfeng Automobile vs. Xiangyu Medical Co | Dongfeng Automobile vs. Kontour Medical Technology | Dongfeng Automobile vs. Chinese Universe Publishing | Dongfeng Automobile vs. Shenzhen Glory Medical |
| Yili Chuanning vs. Sichuan Teway Food | Yili Chuanning vs. Aba Chemicals Corp | Yili Chuanning vs. Xiangpiaopiao Food Co | Yili Chuanning vs. Hubei Xingfa Chemicals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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