Correlation Between Yantai North and Yunnan Xiyi
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By analyzing existing cross correlation between Yantai North Andre and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Yantai North 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 Yantai North with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Yunnan Xiyi.
Diversification Opportunities for Yantai North and Yunnan Xiyi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yantai and Yunnan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre 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 Yantai North 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 Yantai North Andre 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 Yantai North i.e., Yantai North and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Yantai North and Yunnan Xiyi
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 0.84 times more return on investment than Yunnan Xiyi. However, Yantai North Andre is 1.2 times less risky than Yunnan Xiyi. It trades about 0.29 of its potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about -0.01 per unit of risk. If you would invest 2,393 in Yantai North Andre on August 30, 2024 and sell it today you would earn a total of 443.00 from holding Yantai North Andre or generate 18.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Yantai North Andre |
| Yunnan Xiyi Industrial |
Yantai North and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Yunnan Xiyi
The main advantage of trading using opposite Yantai North and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North 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.| Yantai North vs. Mengtian Home Group | Yantai North vs. Xinjiang Tianrun Dairy | Yantai North vs. Guilin Seamild Foods | Yantai North vs. Nanxing Furniture Machinery |
| Yunnan Xiyi vs. Jinyu Bio Technology Co | Yunnan Xiyi vs. Eyebright Medical Technology | Yunnan Xiyi vs. Arrow Home Group | Yunnan Xiyi vs. Vontron Technology 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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