Correlation Between Yunhong CTI and China XD
Can any of the company-specific risk be diversified away by investing in both Yunhong CTI and China XD at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Yunhong CTI and China XD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunhong CTI and China XD Plastics, you can compare the effects of market volatilities on Yunhong CTI and China XD 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 Yunhong CTI with a short position of China XD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunhong CTI and China XD.
Diversification Opportunities for Yunhong CTI and China XD
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yunhong and China is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Yunhong CTI and China XD Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China XD Plastics and Yunhong CTI 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 Yunhong CTI are associated (or correlated) with China XD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China XD Plastics has no effect on the direction of Yunhong CTI i.e., Yunhong CTI and China XD go up and down completely randomly.
Pair Corralation between Yunhong CTI and China XD
If you would invest 0.24 in China XD Plastics on January 26, 2024 and sell it today you would earn a total of 0.00 from holding China XD Plastics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunhong CTI vs. China XD Plastics
Performance |
| Timeline |
| Yunhong CTI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China XD Plastics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yunhong CTI and China XD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunhong CTI and China XD
The main advantage of trading using opposite Yunhong CTI and China XD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunhong CTI position performs unexpectedly, China XD 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 XD will offset losses from the drop in China XD's long position.| Yunhong CTI vs. Card Factory plc | Yunhong CTI vs. School Specialty | Yunhong CTI vs. Ceconomy AG ADR | Yunhong CTI vs. Bowlin Travel Centers |
| China XD vs. Calliditas Therapeutics | China XD vs. Usio Inc | China XD vs. Lizhan Environmental | China XD vs. Western Digital |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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