Correlation Between Xian LONGi and Yangmei Chemical
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By analyzing existing cross correlation between Xian LONGi Silicon and Yangmei Chemical Co, you can compare the effects of market volatilities on Xian LONGi and Yangmei Chemical 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 Xian LONGi with a short position of Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian LONGi and Yangmei Chemical.
Diversification Opportunities for Xian LONGi and Yangmei Chemical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xian and Yangmei is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xian LONGi Silicon and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical and Xian LONGi 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 Xian LONGi Silicon are associated (or correlated) with Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Xian LONGi i.e., Xian LONGi and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Xian LONGi and Yangmei Chemical
Assuming the 90 days trading horizon Xian LONGi Silicon is expected to under-perform the Yangmei Chemical. In addition to that, Xian LONGi is 1.01 times more volatile than Yangmei Chemical Co. It trades about -0.06 of its total potential returns per unit of risk. Yangmei Chemical Co is currently generating about -0.02 per unit of volatility. If you would invest 338.00 in Yangmei Chemical Co on September 3, 2024 and sell it today you would lose (100.00) from holding Yangmei Chemical Co or give up 29.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian LONGi Silicon vs. Yangmei Chemical Co
Performance |
| Timeline |
| Xian LONGi Silicon |
| Yangmei Chemical |
Xian LONGi and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian LONGi and Yangmei Chemical
The main advantage of trading using opposite Xian LONGi and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian LONGi position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical's long position.| Xian LONGi vs. Yangmei Chemical Co | Xian LONGi vs. China Life Insurance | Xian LONGi vs. Tianshui Huatian Technology | Xian LONGi vs. Guangzhou Jointas Chemical |
| Yangmei Chemical vs. Zijin Mining Group | Yangmei Chemical vs. Baoshan Iron Steel | Yangmei Chemical vs. Rongsheng Petrochemical Co | Yangmei Chemical vs. Hoshine Silicon Ind |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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