Correlation Between Bank of XiAn and Yili Chuanning
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By analyzing existing cross correlation between Bank of XiAn and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Bank of XiAn 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 Bank of XiAn with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of XiAn and Yili Chuanning.
Diversification Opportunities for Bank of XiAn and Yili Chuanning
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Yili is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bank of XiAn 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 Bank of XiAn 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 Bank of XiAn 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 Bank of XiAn i.e., Bank of XiAn and Yili Chuanning go up and down completely randomly.
Pair Corralation between Bank of XiAn and Yili Chuanning
Assuming the 90 days trading horizon Bank of XiAn is expected to under-perform the Yili Chuanning. But the stock apears to be less risky and, when comparing its historical volatility, Bank of XiAn is 1.21 times less risky than Yili Chuanning. The stock trades about -0.15 of its potential returns per unit of risk. The Yili Chuanning Biotechnology is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,234 in Yili Chuanning Biotechnology on October 24, 2024 and sell it today you would lose (20.00) from holding Yili Chuanning Biotechnology or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of XiAn vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Bank of XiAn |
| Yili Chuanning Biote |
Bank of XiAn and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of XiAn and Yili Chuanning
The main advantage of trading using opposite Bank of XiAn and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of XiAn 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.| Bank of XiAn vs. Allmed Medical Products | Bank of XiAn vs. Huaxia Fund Management | Bank of XiAn vs. JCHX Mining Management | Bank of XiAn vs. Shanghai CEO Environmental |
| Yili Chuanning vs. Ming Yang Smart | Yili Chuanning vs. 159681 | Yili Chuanning vs. 159005 | Yili Chuanning vs. Loctek Ergonomic Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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