Correlation Between China XD and Yunhong CTI
Can any of the company-specific risk be diversified away by investing in both China XD and Yunhong CTI 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 China XD and Yunhong CTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China XD Plastics and Yunhong CTI, you can compare the effects of market volatilities on China XD and Yunhong CTI 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 China XD with a short position of Yunhong CTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of China XD and Yunhong CTI.
Diversification Opportunities for China XD and Yunhong CTI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Yunhong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China XD Plastics and Yunhong CTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunhong CTI and China XD 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 China XD Plastics are associated (or correlated) with Yunhong CTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunhong CTI has no effect on the direction of China XD i.e., China XD and Yunhong CTI go up and down completely randomly.
Pair Corralation between China XD and Yunhong CTI
If you would invest 243.00 in Yunhong CTI on January 25, 2024 and sell it today you would earn a total of 0.00 from holding Yunhong CTI or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China XD Plastics vs. Yunhong CTI
Performance |
| Timeline |
| China XD Plastics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yunhong CTI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China XD and Yunhong CTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China XD and Yunhong CTI
The main advantage of trading using opposite China XD and Yunhong CTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China XD position performs unexpectedly, Yunhong CTI 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 Yunhong CTI will offset losses from the drop in Yunhong CTI's long position.| China XD vs. First Watch Restaurant | China XD vs. The Wendys Co | China XD vs. nLIGHT Inc | China XD vs. Yum Brands |
| Yunhong CTI vs. Card Factory plc | Yunhong CTI vs. School Specialty | Yunhong CTI vs. Ceconomy AG ADR | Yunhong CTI vs. Bowlin Travel Centers |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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