Correlation Between Xingguang Agricultural and Yingde Greatchem
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xingguang Agricultural Mach and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Xingguang Agricultural and Yingde Greatchem 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 Xingguang Agricultural with a short position of Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Yingde Greatchem.
Diversification Opportunities for Xingguang Agricultural and Yingde Greatchem
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xingguang and Yingde is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che and Xingguang Agricultural 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 Xingguang Agricultural Mach are associated (or correlated) with Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Xingguang Agricultural i.e., Xingguang Agricultural and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Yingde Greatchem
Assuming the 90 days trading horizon Xingguang Agricultural is expected to generate 1.89 times less return on investment than Yingde Greatchem. In addition to that, Xingguang Agricultural is 1.24 times more volatile than Yingde Greatchem Chemicals. It trades about 0.02 of its total potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about 0.04 per unit of volatility. If you would invest 2,510 in Yingde Greatchem Chemicals on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Yingde Greatchem Chemicals or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Xingguang Agricultural |
| Yingde Greatchem Che |
Xingguang Agricultural and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Yingde Greatchem
The main advantage of trading using opposite Xingguang Agricultural and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.The idea behind Xingguang Agricultural Mach and Yingde Greatchem Chemicals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |