Correlation Between China State and Yoantion Industrial
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By analyzing existing cross correlation between China State Construction and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on China State 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 State with a short position of Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Yoantion Industrial.
Diversification Opportunities for China State and Yoantion Industrial
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Yoantion is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding China State 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 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 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 State i.e., China State and Yoantion Industrial go up and down completely randomly.
Pair Corralation between China State and Yoantion Industrial
Assuming the 90 days trading horizon China State is expected to generate 1.69 times less return on investment than Yoantion Industrial. But when comparing it to its historical volatility, China State Construction is 1.95 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 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,218 in Yoantion Industrial IncLtd on October 23, 2024 and sell it today you would lose (165.00) from holding Yoantion Industrial IncLtd or give up 7.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Yoantion Industrial IncLtd
Performance |
| Timeline |
| China State Construction |
| Yoantion Industrial |
China State and Yoantion Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Yoantion Industrial
The main advantage of trading using opposite China State and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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 State vs. Will Semiconductor Co | China State vs. Shandong Sanyuan Biotechnology | China State vs. Guangdong Marubi Biotechnology | China State vs. Lontium Semiconductor Corp |
| Yoantion Industrial vs. Anji Foodstuff Co | Yoantion Industrial vs. Jiamei Food Packaging | Yoantion Industrial vs. Qilu Bank Co | Yoantion Industrial vs. HeNan Splendor Science |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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