Correlation Between Hefei Metalforming and Yunnan Xiyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hefei Metalforming Mach and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Hefei Metalforming and Yunnan Xiyi 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 Hefei Metalforming with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Yunnan Xiyi.
Diversification Opportunities for Hefei Metalforming and Yunnan Xiyi
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hefei and Yunnan is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Yunnan Xiyi
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 0.67 times more return on investment than Yunnan Xiyi. However, Hefei Metalforming Mach is 1.5 times less risky than Yunnan Xiyi. It trades about 0.16 of its potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about -0.15 per unit of risk. If you would invest 704.00 in Hefei Metalforming Mach on December 1, 2024 and sell it today you would earn a total of 59.00 from holding Hefei Metalforming Mach or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Yunnan Xiyi Industrial |
Hefei Metalforming and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Yunnan Xiyi
The main advantage of trading using opposite Hefei Metalforming and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| Hefei Metalforming vs. COL Digital Publishing | Hefei Metalforming vs. Time Publishing and | Hefei Metalforming vs. Qtone Education Group | Hefei Metalforming vs. Shandong Publishing Media |
| Yunnan Xiyi vs. Anji Foodstuff Co | Yunnan Xiyi vs. Guilin Seamild Foods | Yunnan Xiyi vs. Western Metal Materials | Yunnan Xiyi vs. Beijing Easpring Material |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |