Correlation Between Yonyou Auto and Chongqing Zhifei
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By analyzing existing cross correlation between Yonyou Auto Information and Chongqing Zhifei Bio, you can compare the effects of market volatilities on Yonyou Auto and Chongqing Zhifei 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 Yonyou Auto with a short position of Chongqing Zhifei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and Chongqing Zhifei.
Diversification Opportunities for Yonyou Auto and Chongqing Zhifei
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yonyou and Chongqing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information and Chongqing Zhifei Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Zhifei Bio and Yonyou Auto 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 Yonyou Auto Information are associated (or correlated) with Chongqing Zhifei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Zhifei Bio has no effect on the direction of Yonyou Auto i.e., Yonyou Auto and Chongqing Zhifei go up and down completely randomly.
Pair Corralation between Yonyou Auto and Chongqing Zhifei
Assuming the 90 days trading horizon Yonyou Auto Information is expected to generate 0.89 times more return on investment than Chongqing Zhifei. However, Yonyou Auto Information is 1.13 times less risky than Chongqing Zhifei. It trades about -0.02 of its potential returns per unit of risk. Chongqing Zhifei Bio is currently generating about -0.04 per unit of risk. If you would invest 2,827 in Yonyou Auto Information on September 4, 2024 and sell it today you would lose (836.00) from holding Yonyou Auto Information or give up 29.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 83.55% |
| Values | Daily Returns |
Yonyou Auto Information vs. Chongqing Zhifei Bio
Performance |
| Timeline |
| Yonyou Auto Information |
| Chongqing Zhifei Bio |
Yonyou Auto and Chongqing Zhifei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and Chongqing Zhifei
The main advantage of trading using opposite Yonyou Auto and Chongqing Zhifei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto position performs unexpectedly, Chongqing Zhifei 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 Chongqing Zhifei will offset losses from the drop in Chongqing Zhifei's long position.| Yonyou Auto vs. Shenzhen Bioeasy Biotechnology | Yonyou Auto vs. HaiXin Foods Co | Yonyou Auto vs. Ligao Foods CoLtd | Yonyou Auto vs. Guangdong Wens Foodstuff |
| Chongqing Zhifei vs. Juewei Food Co | Chongqing Zhifei vs. Andon Health Co | Chongqing Zhifei vs. HaiXin Foods Co | Chongqing Zhifei vs. Easyhome New Retail |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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