Correlation Between China State and Wuliangye Yibin
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By analyzing existing cross correlation between China State Construction and Wuliangye Yibin Co, you can compare the effects of market volatilities on China State and Wuliangye Yibin 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 State with a short position of Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Wuliangye Yibin.
Diversification Opportunities for China State and Wuliangye Yibin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Wuliangye is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin and China State 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 State Construction are associated (or correlated) with Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of China State i.e., China State and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between China State and Wuliangye Yibin
Assuming the 90 days trading horizon China State Construction is expected to generate 0.9 times more return on investment than Wuliangye Yibin. However, China State Construction is 1.11 times less risky than Wuliangye Yibin. It trades about 0.01 of its potential returns per unit of risk. Wuliangye Yibin Co is currently generating about 0.0 per unit of risk. If you would invest 585.00 in China State Construction on August 24, 2024 and sell it today you would earn a total of 26.00 from holding China State Construction or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Wuliangye Yibin Co
Performance |
| Timeline |
| China State Construction |
| Wuliangye Yibin |
China State and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Wuliangye Yibin
The main advantage of trading using opposite China State and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin's long position.| China State vs. Beijing Mainstreets Investment | China State vs. Qingdao Foods Co | China State vs. New Hope Dairy | China State vs. Zhengzhou Qianweiyangchu Food |
| Wuliangye Yibin vs. Unigroup Guoxin Microelectronics | Wuliangye Yibin vs. Eyebright Medical Technology | Wuliangye Yibin vs. Saurer Intelligent Technology | Wuliangye Yibin vs. Integrated Electronic Systems |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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