Correlation Between China State and Yili Chuanning
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By analyzing existing cross correlation between China State Construction and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on China State and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Yili Chuanning.
Diversification Opportunities for China State and Yili Chuanning
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Yili is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of China State i.e., China State and Yili Chuanning go up and down completely randomly.
Pair Corralation between China State and Yili Chuanning
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Yili Chuanning. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.59 times less risky than Yili Chuanning. The stock trades about -0.38 of its potential returns per unit of risk. The Yili Chuanning Biotechnology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,221 in Yili Chuanning Biotechnology on October 29, 2024 and sell it today you would lose (13.00) from holding Yili Chuanning Biotechnology or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| China State Construction |
| Yili Chuanning Biote |
China State and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Yili Chuanning
The main advantage of trading using opposite China State and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| China State vs. Panda Dairy Corp | China State vs. Uroica Mining Safety | China State vs. Qingdao Foods Co | China State vs. Kingclean Electric Co |
| Yili Chuanning vs. Chinese Universe Publishing | Yili Chuanning vs. Shandong Publishing Media | Yili Chuanning vs. Jiangsu Phoenix Publishing | Yili Chuanning vs. Time Publishing and |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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