Correlation Between Guangxi Guiguan and Yunnan Xiyi
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By analyzing existing cross correlation between Guangxi Guiguan Electric and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Guangxi Guiguan 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 Guangxi Guiguan with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guiguan and Yunnan Xiyi.
Diversification Opportunities for Guangxi Guiguan and Yunnan Xiyi
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Yunnan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guiguan Electric 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 Guangxi Guiguan 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 Guangxi Guiguan Electric 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 Guangxi Guiguan i.e., Guangxi Guiguan and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Guangxi Guiguan and Yunnan Xiyi
Assuming the 90 days trading horizon Guangxi Guiguan Electric is expected to generate 0.56 times more return on investment than Yunnan Xiyi. However, Guangxi Guiguan Electric is 1.8 times less risky than Yunnan Xiyi. It trades about 0.01 of its potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about -0.02 per unit of risk. If you would invest 593.00 in Guangxi Guiguan Electric on August 30, 2024 and sell it today you would earn a total of 24.00 from holding Guangxi Guiguan Electric or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Guiguan Electric vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Guangxi Guiguan Electric |
| Yunnan Xiyi Industrial |
Guangxi Guiguan and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Guiguan and Yunnan Xiyi
The main advantage of trading using opposite Guangxi Guiguan and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guiguan 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.| Guangxi Guiguan vs. Yonyou Auto Information | Guangxi Guiguan vs. Keeson Technology Corp | Guangxi Guiguan vs. Vontron Technology Co | Guangxi Guiguan vs. Invengo Information Technology |
| Yunnan Xiyi vs. Ningbo Fangzheng Automobile | Yunnan Xiyi vs. Zhejiang Qianjiang Motorcycle | Yunnan Xiyi vs. ROPEOK Technology Group | Yunnan Xiyi vs. Chahua Modern Housewares |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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