Correlation Between Yili Chuanning and Tjk Machinery
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Yili Chuanning and Tjk Machinery 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 Yili Chuanning with a short position of Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Tjk Machinery.
Diversification Opportunities for Yili Chuanning and Tjk Machinery
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yili and Tjk is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin and Yili Chuanning 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 Yili Chuanning Biotechnology are associated (or correlated) with Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Tjk Machinery go up and down completely randomly.
Pair Corralation between Yili Chuanning and Tjk Machinery
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 0.65 times more return on investment than Tjk Machinery. However, Yili Chuanning Biotechnology is 1.54 times less risky than Tjk Machinery. It trades about -0.12 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about -0.11 per unit of risk. If you would invest 1,300 in Yili Chuanning Biotechnology on September 26, 2024 and sell it today you would lose (58.00) from holding Yili Chuanning Biotechnology or give up 4.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Yili Chuanning Biotechnology vs. Tjk Machinery Tianjin
Performance |
Timeline |
Yili Chuanning Biote |
Tjk Machinery Tianjin |
Yili Chuanning and Tjk Machinery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yili Chuanning and Tjk Machinery
The main advantage of trading using opposite Yili Chuanning and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.Yili Chuanning vs. Industrial and Commercial | Yili Chuanning vs. Agricultural Bank of | Yili Chuanning vs. China Construction Bank | Yili Chuanning vs. Bank of China |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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