Correlation Between Xiamen Goldenhome and YLZ Information
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By analyzing existing cross correlation between Xiamen Goldenhome Co and YLZ Information Tech, you can compare the effects of market volatilities on Xiamen Goldenhome and YLZ Information 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 Xiamen Goldenhome with a short position of YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and YLZ Information.
Diversification Opportunities for Xiamen Goldenhome and YLZ Information
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and YLZ is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information Tech and Xiamen Goldenhome 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 Xiamen Goldenhome Co are associated (or correlated) with YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and YLZ Information go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and YLZ Information
Assuming the 90 days trading horizon Xiamen Goldenhome is expected to generate 1.48 times less return on investment than YLZ Information. But when comparing it to its historical volatility, Xiamen Goldenhome Co is 1.09 times less risky than YLZ Information. It trades about 0.08 of its potential returns per unit of risk. YLZ Information Tech is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 374.00 in YLZ Information Tech on September 13, 2024 and sell it today you would earn a total of 19.00 from holding YLZ Information Tech or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. YLZ Information Tech
Performance |
| Timeline |
| Xiamen Goldenhome |
| YLZ Information Tech |
Xiamen Goldenhome and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and YLZ Information
The main advantage of trading using opposite Xiamen Goldenhome and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, YLZ Information 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 YLZ Information will offset losses from the drop in YLZ Information's long position.| Xiamen Goldenhome vs. Lutian Machinery Co | Xiamen Goldenhome vs. China Longyuan Power | Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. Bank of China |
| YLZ Information vs. Ming Yang Smart | YLZ Information vs. 159681 | YLZ Information vs. 159005 | YLZ Information vs. Loctek Ergonomic Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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