Correlation Between Wuhan Xianglong and Yunnan Yuntou
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By analyzing existing cross correlation between Wuhan Xianglong Power and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Wuhan Xianglong 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 Wuhan Xianglong with a short position of Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Yunnan Yuntou.
Diversification Opportunities for Wuhan Xianglong and Yunnan Yuntou
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Yunnan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power 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 Wuhan Xianglong 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 Xianglong Power 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 Wuhan Xianglong i.e., Wuhan Xianglong and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Yunnan Yuntou
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 2.39 times more return on investment than Yunnan Yuntou. However, Wuhan Xianglong is 2.39 times more volatile than Yunnan Yuntou Ecology. It trades about 0.16 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about 0.16 per unit of risk. If you would invest 881.00 in Wuhan Xianglong Power on August 30, 2024 and sell it today you would earn a total of 296.00 from holding Wuhan Xianglong Power or generate 33.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Yunnan Yuntou Ecology |
Wuhan Xianglong and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Yunnan Yuntou
The main advantage of trading using opposite Wuhan Xianglong and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong 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.| Wuhan Xianglong vs. Postal Savings Bank | Wuhan Xianglong vs. Shanghai Jinfeng Wine | Wuhan Xianglong vs. HeNan Splendor Science | Wuhan Xianglong vs. Offshore Oil Engineering |
| Yunnan Yuntou vs. BYD Co Ltd | Yunnan Yuntou vs. China Mobile Limited | Yunnan Yuntou vs. Agricultural Bank of | Yunnan Yuntou 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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