Correlation Between China Sports and Yunnan Xiyi
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By analyzing existing cross correlation between China Sports Industry and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on China Sports and Yunnan Xiyi 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 China Sports with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Yunnan Xiyi.
Diversification Opportunities for China Sports and Yunnan Xiyi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Yunnan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial and China Sports 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 China Sports Industry are associated (or correlated) with Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of China Sports i.e., China Sports and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between China Sports and Yunnan Xiyi
Assuming the 90 days trading horizon China Sports is expected to generate 1.2 times less return on investment than Yunnan Xiyi. But when comparing it to its historical volatility, China Sports Industry is 1.99 times less risky than Yunnan Xiyi. It trades about 0.15 of its potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,079 in Yunnan Xiyi Industrial on September 2, 2024 and sell it today you would earn a total of 60.00 from holding Yunnan Xiyi Industrial or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| China Sports Industry |
| Yunnan Xiyi Industrial |
China Sports and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Yunnan Xiyi
The main advantage of trading using opposite China Sports and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| China Sports vs. Huitong Construction Group | China Sports vs. Shaanxi Construction Machinery | China Sports vs. Long Yuan Construction | China Sports vs. China Life Insurance |
| Yunnan Xiyi vs. China Publishing Media | Yunnan Xiyi vs. Sichuan Hebang Biotechnology | Yunnan Xiyi vs. Zhejiang Publishing Media | Yunnan Xiyi vs. Jiangsu GDK Biotechnology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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