Correlation Between YLZ Information and Yonghui Superstores
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By analyzing existing cross correlation between YLZ Information Tech and Yonghui Superstores Co, you can compare the effects of market volatilities on YLZ Information and Yonghui Superstores 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 YLZ Information with a short position of Yonghui Superstores. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and Yonghui Superstores.
Diversification Opportunities for YLZ Information and Yonghui Superstores
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YLZ and Yonghui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech and Yonghui Superstores Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonghui Superstores and YLZ Information 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 YLZ Information Tech are associated (or correlated) with Yonghui Superstores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonghui Superstores has no effect on the direction of YLZ Information i.e., YLZ Information and Yonghui Superstores go up and down completely randomly.
Pair Corralation between YLZ Information and Yonghui Superstores
Assuming the 90 days trading horizon YLZ Information is expected to generate 1.06 times less return on investment than Yonghui Superstores. But when comparing it to its historical volatility, YLZ Information Tech is 2.4 times less risky than Yonghui Superstores. It trades about 0.2 of its potential returns per unit of risk. Yonghui Superstores Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Yonghui Superstores Co on September 8, 2024 and sell it today you would earn a total of 42.00 from holding Yonghui Superstores Co or generate 8.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
YLZ Information Tech vs. Yonghui Superstores Co
Performance |
Timeline |
YLZ Information Tech |
Yonghui Superstores |
YLZ Information and Yonghui Superstores Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YLZ Information and Yonghui Superstores
The main advantage of trading using opposite YLZ Information and Yonghui Superstores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information position performs unexpectedly, Yonghui Superstores 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 Yonghui Superstores will offset losses from the drop in Yonghui Superstores' long position.YLZ Information vs. Chengdu Kanghua Biological | YLZ Information vs. Beijing Wantai Biological | YLZ Information vs. Suzhou Novoprotein Scientific | YLZ Information vs. Aluminum Corp of |
Yonghui Superstores vs. Cultural Investment Holdings | Yonghui Superstores vs. Gome Telecom Equipment | Yonghui Superstores vs. Bus Online Co | Yonghui Superstores vs. Holitech Technology Co |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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