Correlation Between Yantai North and China Baoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yantai North Andre and China Baoan Group, you can compare the effects of market volatilities on Yantai North and China Baoan 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 China Baoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and China Baoan.
Diversification Opportunities for Yantai North and China Baoan
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yantai and China is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and China Baoan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Baoan Group 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 China Baoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Baoan Group has no effect on the direction of Yantai North i.e., Yantai North and China Baoan go up and down completely randomly.
Pair Corralation between Yantai North and China Baoan
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 1.51 times more return on investment than China Baoan. However, Yantai North is 1.51 times more volatile than China Baoan Group. It trades about 0.04 of its potential returns per unit of risk. China Baoan Group is currently generating about -0.01 per unit of risk. If you would invest 1,864 in Yantai North Andre on September 23, 2024 and sell it today you would earn a total of 921.00 from holding Yantai North Andre or generate 49.41% 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. China Baoan Group
Performance |
Timeline |
Yantai North Andre |
China Baoan Group |
Yantai North and China Baoan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yantai North and China Baoan
The main advantage of trading using opposite Yantai North and China Baoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North position performs unexpectedly, China Baoan 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 China Baoan will offset losses from the drop in China Baoan's long position.Yantai North vs. Nanjing Putian Telecommunications | Yantai North vs. Tianjin Realty Development | Yantai North vs. Kangyue Technology Co | Yantai North vs. Shenzhen Hifuture Electric |
China Baoan vs. Ming Yang Smart | China Baoan vs. 159681 | China Baoan vs. 159005 | China Baoan 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |