Correlation Between Wuhan Yangtze and Yili Chuanning
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Yili Chuanning.
Diversification Opportunities for Wuhan Yangtze and Yili Chuanning
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wuhan and Yili is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication 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 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 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 Wuhan Yangtze i.e., Wuhan Yangtze and Yili Chuanning go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Yili Chuanning
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the Yili Chuanning. In addition to that, Wuhan Yangtze is 2.21 times more volatile than Yili Chuanning Biotechnology. It trades about -0.36 of its total potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about -0.39 per unit of volatility. If you would invest 1,264 in Yili Chuanning Biotechnology on October 16, 2024 and sell it today you would lose (137.00) from holding Yili Chuanning Biotechnology or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Yili Chuanning Biote |
Wuhan Yangtze and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Yili Chuanning
The main advantage of trading using opposite Wuhan Yangtze and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Pengxin International Mining | Wuhan Yangtze vs. Chenzhou Jingui Silver | Wuhan Yangtze vs. Jinling Hotel Corp | Wuhan Yangtze vs. Hainan Mining Co |
| Yili Chuanning vs. State Grid InformationCommunication | Yili Chuanning vs. East Money Information | Yili Chuanning vs. Shenzhen SDG Information | Yili Chuanning vs. Guilin Seamild Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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