Correlation Between Vontron Technology and Yunnan Xiyi

Can any of the company-specific risk be diversified away by investing in both Vontron Technology and Yunnan Xiyi 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 Vontron Technology and Yunnan Xiyi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vontron Technology Co and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Vontron Technology and Yunnan Xiyi 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 Vontron Technology with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontron Technology and Yunnan Xiyi.

Diversification Opportunities for Vontron Technology and Yunnan Xiyi

-0.72

Correlation Coefficient

Vontron Technology  Yunnan Xiyi

Pay attention - limited upside

The 3 months correlation between Vontron and Yunnan is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vontron Technology Co and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial and Vontron Technology 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 Vontron Technology Co are associated (or correlated) with Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Vontron Technology i.e., Vontron Technology and Yunnan Xiyi go up and down completely randomly.

Pair Corralation between Vontron Technology and Yunnan Xiyi

Assuming the 90 days trading horizon Vontron Technology is expected to generate 1769.0 times less return on investment than Yunnan Xiyi. But when comparing it to its historical volatility, Vontron Technology Co is 3.89 times less risky than Yunnan Xiyi. It trades about 0.0 of its potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,115  in Yunnan Xiyi Industrial on December 30, 2024 and sell it today you would earn a total of  46.00  from holding Yunnan Xiyi Industrial or generate 2.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Vontron Technology Co  vs.  Yunnan Xiyi Industrial

Vontron Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vontron Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Vontron Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Yunnan Xiyi Industrial

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yunnan Xiyi Industrial are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Yunnan Xiyi may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Vontron Technology and Yunnan Xiyi

The main advantage of trading using opposite Vontron Technology and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontron Technology position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.

The idea behind Vontron Technology Co and Yunnan Xiyi Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.