Correlation Between Yangmei Chemical and Xinjiang Communications
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By analyzing existing cross correlation between Yangmei Chemical Co and Xinjiang Communications Construction, you can compare the effects of market volatilities on Yangmei Chemical and Xinjiang Communications 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 Yangmei Chemical with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Xinjiang Communications.
Diversification Opportunities for Yangmei Chemical and Xinjiang Communications
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yangmei and Xinjiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Yangmei Chemical 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 Yangmei Chemical Co are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Yangmei Chemical i.e., Yangmei Chemical and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Xinjiang Communications
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to under-perform the Xinjiang Communications. But the stock apears to be less risky and, when comparing its historical volatility, Yangmei Chemical Co is 1.15 times less risky than Xinjiang Communications. The stock trades about -0.02 of its potential returns per unit of risk. The Xinjiang Communications Construction is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,336 in Xinjiang Communications Construction on November 2, 2024 and sell it today you would lose (263.00) from holding Xinjiang Communications Construction or give up 19.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Yangmei Chemical |
| Xinjiang Communications |
Yangmei Chemical and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Xinjiang Communications
The main advantage of trading using opposite Yangmei Chemical and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Yangmei Chemical vs. Beijing Jiaman Dress | Yangmei Chemical vs. GRINM Semiconductor Materials | Yangmei Chemical vs. Zbit Semiconductor A | Yangmei Chemical vs. Union Semiconductor Co |
| Xinjiang Communications vs. AVIC Fund Management | Xinjiang Communications vs. Chenzhou Jingui Silver | Xinjiang Communications vs. Air China Ltd | Xinjiang Communications vs. Innovative Medical Management |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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