Correlation Between Wuhan Yangtze and Yunnan Yuntou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Yangtze Communication and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Wuhan Yangtze and Yunnan Yuntou 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 Wuhan Yangtze with a short position of Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Yunnan Yuntou.
Diversification Opportunities for Wuhan Yangtze and Yunnan Yuntou
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Yunnan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Yunnan Yuntou Ecology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Yuntou Ecology and Wuhan Yangtze 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 Wuhan Yangtze Communication are associated (or correlated) with Yunnan Yuntou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Yuntou Ecology has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Yunnan Yuntou
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.66 times more return on investment than Yunnan Yuntou. However, Wuhan Yangtze is 1.66 times more volatile than Yunnan Yuntou Ecology. It trades about 0.04 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about -0.03 per unit of risk. If you would invest 1,978 in Wuhan Yangtze Communication on August 29, 2024 and sell it today you would earn a total of 607.00 from holding Wuhan Yangtze Communication or generate 30.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Yunnan Yuntou Ecology |
Wuhan Yangtze and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Yunnan Yuntou
The main advantage of trading using opposite Wuhan Yangtze and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Yunnan Yuntou 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 Yuntou will offset losses from the drop in Yunnan Yuntou's long position.| Wuhan Yangtze vs. Yankershop Food Co | Wuhan Yangtze vs. Youyou Foods Co | Wuhan Yangtze vs. Great Sun Foods Co | Wuhan Yangtze vs. Harbin Air Conditioning |
| Yunnan Yuntou vs. Cambricon Technologies Corp | Yunnan Yuntou vs. Loongson Technology Corp | Yunnan Yuntou vs. Shenzhen Fortune Trend | Yunnan Yuntou vs. Wuhan Xianglong Power |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |