Correlation Between Cinda Securities and Yunnan Xiyi
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By analyzing existing cross correlation between Cinda Securities Co and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Cinda Securities and Yunnan Xiyi 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 Cinda Securities with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Yunnan Xiyi.
Diversification Opportunities for Cinda Securities and Yunnan Xiyi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Yunnan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Cinda Securities i.e., Cinda Securities and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Cinda Securities and Yunnan Xiyi
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Yunnan Xiyi. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.43 times less risky than Yunnan Xiyi. The stock trades about -0.06 of its potential returns per unit of risk. The Yunnan Xiyi Industrial is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,110 in Yunnan Xiyi Industrial on September 4, 2024 and sell it today you would earn a total of 143.00 from holding Yunnan Xiyi Industrial or generate 12.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Cinda Securities |
| Yunnan Xiyi Industrial |
Cinda Securities and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Yunnan Xiyi
The main advantage of trading using opposite Cinda Securities and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Yunnan Xiyi 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 Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| Cinda Securities vs. Biwin Storage Technology | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. Industrial and Commercial | Cinda Securities vs. China Construction Bank |
| Yunnan Xiyi vs. Cultural Investment Holdings | Yunnan Xiyi vs. Gome Telecom Equipment | Yunnan Xiyi vs. Bus Online Co | Yunnan Xiyi vs. Holitech Technology Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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