Correlation Between Yantai North and Wuhan Yangtze
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By analyzing existing cross correlation between Yantai North Andre and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Yantai North and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Wuhan Yangtze.
Diversification Opportunities for Yantai North and Wuhan Yangtze
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yantai and Wuhan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Yantai North i.e., Yantai North and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Yantai North and Wuhan Yangtze
Assuming the 90 days trading horizon Yantai North is expected to generate 1.2 times less return on investment than Wuhan Yangtze. But when comparing it to its historical volatility, Yantai North Andre is 1.0 times less risky than Wuhan Yangtze. It trades about 0.04 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,092 in Wuhan Yangtze Communication on August 25, 2024 and sell it today you would earn a total of 775.00 from holding Wuhan Yangtze Communication or generate 37.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Yantai North Andre |
| Wuhan Yangtze Commun |
Yantai North and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Wuhan Yangtze
The main advantage of trading using opposite Yantai North and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Yantai North vs. Wuhan Yangtze Communication | Yantai North vs. Eastern Communications Co | Yantai North vs. Keda Clean Energy | Yantai North vs. Fiberhome Telecommunication Technologies |
| Wuhan Yangtze vs. Beijing Yanjing Brewery | Wuhan Yangtze vs. GKHT Medical Technology | Wuhan Yangtze vs. Touchstone International Medical | Wuhan Yangtze vs. Shandong Polymer Biochemicals |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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