Correlation Between Chinese Universe and Yili Chuanning
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By analyzing existing cross correlation between Chinese Universe Publishing and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Yili Chuanning.
Diversification Opportunities for Chinese Universe and Yili Chuanning
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chinese and Yili is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing 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 Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Yili Chuanning go up and down completely randomly.
Pair Corralation between Chinese Universe and Yili Chuanning
Assuming the 90 days trading horizon Chinese Universe is expected to generate 1.21 times less return on investment than Yili Chuanning. But when comparing it to its historical volatility, Chinese Universe Publishing is 1.01 times less risky than Yili Chuanning. It trades about 0.03 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 882.00 in Yili Chuanning Biotechnology on November 7, 2024 and sell it today you would earn a total of 325.00 from holding Yili Chuanning Biotechnology or generate 36.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Chinese Universe Pub |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yili Chuanning Biote |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chinese Universe and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Yili Chuanning
The main advantage of trading using opposite Chinese Universe and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.The idea behind Chinese Universe Publishing and Yili Chuanning Biotechnology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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