Correlation Between Shanghai Lingyun and YLZ Information
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By analyzing existing cross correlation between Shanghai Lingyun Industries and YLZ Information Tech, you can compare the effects of market volatilities on Shanghai Lingyun and YLZ Information 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 Shanghai Lingyun with a short position of YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Lingyun and YLZ Information.
Diversification Opportunities for Shanghai Lingyun and YLZ Information
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and YLZ is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Lingyun Industries and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information Tech and Shanghai Lingyun 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 Shanghai Lingyun Industries are associated (or correlated) with YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Shanghai Lingyun i.e., Shanghai Lingyun and YLZ Information go up and down completely randomly.
Pair Corralation between Shanghai Lingyun and YLZ Information
Assuming the 90 days trading horizon Shanghai Lingyun Industries is expected to under-perform the YLZ Information. In addition to that, Shanghai Lingyun is 1.2 times more volatile than YLZ Information Tech. It trades about -0.01 of its total potential returns per unit of risk. YLZ Information Tech is currently generating about 0.0 per unit of volatility. If you would invest 365.00 in YLZ Information Tech on September 1, 2024 and sell it today you would lose (4.00) from holding YLZ Information Tech or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Lingyun Industries vs. YLZ Information Tech
Performance |
| Timeline |
| Shanghai Lingyun Ind |
| YLZ Information Tech |
Shanghai Lingyun and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Lingyun and YLZ Information
The main advantage of trading using opposite Shanghai Lingyun and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Lingyun position performs unexpectedly, YLZ Information 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 YLZ Information will offset losses from the drop in YLZ Information's long position.| Shanghai Lingyun vs. Agricultural Bank of | Shanghai Lingyun vs. Industrial and Commercial | Shanghai Lingyun vs. Bank of China | Shanghai Lingyun vs. PetroChina Co Ltd |
| YLZ Information vs. Ming Yang Smart | YLZ Information vs. 159681 | YLZ Information vs. 159005 | YLZ Information vs. Loctek Ergonomic Technology |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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