Correlation Between Datang HuaYin and Yunnan Yuntou
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By analyzing existing cross correlation between Datang HuaYin Electric and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Datang HuaYin 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 Datang HuaYin with a short position of Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and Yunnan Yuntou.
Diversification Opportunities for Datang HuaYin and Yunnan Yuntou
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Datang and Yunnan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric 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 Datang HuaYin 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 Datang HuaYin Electric 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 Datang HuaYin i.e., Datang HuaYin and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Datang HuaYin and Yunnan Yuntou
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to generate 1.22 times more return on investment than Yunnan Yuntou. However, Datang HuaYin is 1.22 times more volatile than Yunnan Yuntou Ecology. It trades about 0.0 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about -0.02 per unit of risk. If you would invest 417.00 in Datang HuaYin Electric on September 14, 2024 and sell it today you would lose (53.00) from holding Datang HuaYin Electric or give up 12.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Datang HuaYin Electric vs. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Datang HuaYin Electric |
| Yunnan Yuntou Ecology |
Datang HuaYin and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang HuaYin and Yunnan Yuntou
The main advantage of trading using opposite Datang HuaYin and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin 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.| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
| Yunnan Yuntou vs. Agricultural Bank of | Yunnan Yuntou vs. Industrial and Commercial | Yunnan Yuntou vs. Bank of China | Yunnan Yuntou vs. PetroChina Co Ltd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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