Correlation Between Gansu Yasheng and Sichuan Yahua
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Gansu Yasheng and Sichuan Yahua 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 Gansu Yasheng with a short position of Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Sichuan Yahua.
Diversification Opportunities for Gansu Yasheng and Sichuan Yahua
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gansu and Sichuan is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial and Gansu Yasheng 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 Gansu Yasheng Industrial are associated (or correlated) with Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Gansu Yasheng i.e., Gansu Yasheng and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Sichuan Yahua
Assuming the 90 days trading horizon Gansu Yasheng is expected to generate 2.4 times less return on investment than Sichuan Yahua. But when comparing it to its historical volatility, Gansu Yasheng Industrial is 1.36 times less risky than Sichuan Yahua. It trades about 0.06 of its potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 866.00 in Sichuan Yahua Industrial on November 28, 2024 and sell it today you would earn a total of 371.00 from holding Sichuan Yahua Industrial or generate 42.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Sichuan Yahua Industrial
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Sichuan Yahua Industrial |
Gansu Yasheng and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Sichuan Yahua
The main advantage of trading using opposite Gansu Yasheng and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.| Gansu Yasheng vs. Kidswant Children Products | Gansu Yasheng vs. Suzhou Douson Drilling | Gansu Yasheng vs. Shaanxi Meineng Clean | Gansu Yasheng vs. Shandong Longquan Pipeline |
| Sichuan Yahua vs. Chinese Universe Publishing | Sichuan Yahua vs. Tianjin Pengling Rubber | Sichuan Yahua vs. Qtone Education Group | Sichuan Yahua vs. Duzhe Publishing Media |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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