Correlation Between Yonghui Superstores and Industrial
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By analyzing existing cross correlation between Yonghui Superstores Co and Industrial and Commercial, you can compare the effects of market volatilities on Yonghui Superstores and 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 Yonghui Superstores with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonghui Superstores and Industrial.
Diversification Opportunities for Yonghui Superstores and Industrial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yonghui and Industrial is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Yonghui Superstores Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Yonghui Superstores 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 Yonghui Superstores Co are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Yonghui Superstores i.e., Yonghui Superstores and Industrial go up and down completely randomly.
Pair Corralation between Yonghui Superstores and Industrial
Assuming the 90 days trading horizon Yonghui Superstores is expected to generate 1.31 times less return on investment than Industrial. In addition to that, Yonghui Superstores is 2.48 times more volatile than Industrial and Commercial. It trades about 0.03 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.08 per unit of volatility. If you would invest 403.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 217.00 from holding Industrial and Commercial or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonghui Superstores Co vs. Industrial and Commercial
Performance |
| Timeline |
| Yonghui Superstores |
| Industrial and Commercial |
Yonghui Superstores and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonghui Superstores and Industrial
The main advantage of trading using opposite Yonghui Superstores and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonghui Superstores position performs unexpectedly, 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 Industrial will offset losses from the drop in Industrial's long position.| Yonghui Superstores vs. PetroChina Co Ltd | Yonghui Superstores vs. China Mobile Limited | Yonghui Superstores vs. Ping An Insurance | Yonghui Superstores vs. China Petroleum Chemical |
| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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