Correlation Between China Railway and Yoantion Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Construction and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on China Railway and Yoantion Industrial 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 China Railway with a short position of Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Yoantion Industrial.
Diversification Opportunities for China Railway and Yoantion Industrial
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Yoantion is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial and China Railway 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 China Railway Construction are associated (or correlated) with Yoantion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoantion Industrial has no effect on the direction of China Railway i.e., China Railway and Yoantion Industrial go up and down completely randomly.
Pair Corralation between China Railway and Yoantion Industrial
Assuming the 90 days trading horizon China Railway is expected to generate 8.3 times less return on investment than Yoantion Industrial. But when comparing it to its historical volatility, China Railway Construction is 1.88 times less risky than Yoantion Industrial. It trades about 0.01 of its potential returns per unit of risk. Yoantion Industrial IncLtd is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,462 in Yoantion Industrial IncLtd on November 3, 2024 and sell it today you would earn a total of 669.00 from holding Yoantion Industrial IncLtd or generate 45.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Yoantion Industrial IncLtd
Performance |
| Timeline |
| China Railway Constr |
| Yoantion Industrial |
China Railway and Yoantion Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Yoantion Industrial
The main advantage of trading using opposite China Railway and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Yoantion Industrial 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 Yoantion Industrial will offset losses from the drop in Yoantion Industrial's long position.| China Railway vs. Guangdong Jingyi Metal | China Railway vs. Shenzhen Glory Medical | China Railway vs. CareRay Digital Medical | China Railway vs. Allmed Medical Products |
| Yoantion Industrial vs. Aluminum Corp of | Yoantion Industrial vs. Youngy Health Co | Yoantion Industrial vs. Dezhan HealthCare Co | Yoantion Industrial vs. Goodwill E Health |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |