Correlation Between Chinese Universe and Yonghui Superstores
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By analyzing existing cross correlation between Chinese Universe Publishing and Yonghui Superstores Co, you can compare the effects of market volatilities on Chinese Universe and Yonghui Superstores 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 Yonghui Superstores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Yonghui Superstores.
Diversification Opportunities for Chinese Universe and Yonghui Superstores
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and Yonghui is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Yonghui Superstores Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonghui Superstores 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 Yonghui Superstores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonghui Superstores has no effect on the direction of Chinese Universe i.e., Chinese Universe and Yonghui Superstores go up and down completely randomly.
Pair Corralation between Chinese Universe and Yonghui Superstores
Assuming the 90 days trading horizon Chinese Universe is expected to generate 3.37 times less return on investment than Yonghui Superstores. But when comparing it to its historical volatility, Chinese Universe Publishing is 2.98 times less risky than Yonghui Superstores. It trades about 0.16 of its potential returns per unit of risk. Yonghui Superstores Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 517.00 in Yonghui Superstores Co on September 13, 2024 and sell it today you would earn a total of 114.00 from holding Yonghui Superstores Co or generate 22.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Yonghui Superstores Co
Performance |
| Timeline |
| Chinese Universe Pub |
| Yonghui Superstores |
Chinese Universe and Yonghui Superstores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Yonghui Superstores
The main advantage of trading using opposite Chinese Universe and Yonghui Superstores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Yonghui Superstores 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 Yonghui Superstores will offset losses from the drop in Yonghui Superstores' long position.| Chinese Universe vs. Ming Yang Smart | Chinese Universe vs. 159681 | Chinese Universe vs. 159005 | Chinese Universe vs. Loctek Ergonomic Technology |
| Yonghui Superstores vs. BYD Co Ltd | Yonghui Superstores vs. China Mobile Limited | Yonghui Superstores vs. Agricultural Bank of | Yonghui Superstores vs. Industrial and Commercial |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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