Correlation Between Xingguang Agricultural and Yonyou Auto
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By analyzing existing cross correlation between Xingguang Agricultural Mach and Yonyou Auto Information, you can compare the effects of market volatilities on Xingguang Agricultural and Yonyou Auto 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 Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Yonyou Auto.
Diversification Opportunities for Xingguang Agricultural and Yonyou Auto
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xingguang and Yonyou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach and Yonyou Auto Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonyou Auto Information 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 Yonyou Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonyou Auto Information has no effect on the direction of Xingguang Agricultural i.e., Xingguang Agricultural and Yonyou Auto go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Yonyou Auto
Assuming the 90 days trading horizon Xingguang Agricultural Mach is expected to generate 1.32 times more return on investment than Yonyou Auto. However, Xingguang Agricultural is 1.32 times more volatile than Yonyou Auto Information. It trades about -0.01 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about -0.03 per unit of risk. If you would invest 950.00 in Xingguang Agricultural Mach on October 28, 2024 and sell it today you would lose (303.00) from holding Xingguang Agricultural Mach or give up 31.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.75% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Yonyou Auto Information
Performance |
| Timeline |
| Xingguang Agricultural |
| Yonyou Auto Information |
Xingguang Agricultural and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Yonyou Auto
The main advantage of trading using opposite Xingguang Agricultural and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural position performs unexpectedly, Yonyou Auto 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 Yonyou Auto will offset losses from the drop in Yonyou Auto's long position.| Xingguang Agricultural vs. China Petroleum Chemical | Xingguang Agricultural vs. PetroChina Co Ltd | Xingguang Agricultural vs. China State Construction | Xingguang Agricultural vs. China Railway Group |
| Yonyou Auto vs. Hainan Mining Co | Yonyou Auto vs. Xinjiang Baodi Mining | Yonyou Auto vs. Sublime China Information | Yonyou Auto vs. Western Mining 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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