Correlation Between International CSRC and Yi Jinn

Can any of the company-specific risk be diversified away by investing in both International CSRC and Yi Jinn 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 International CSRC and Yi Jinn into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between International CSRC Investment and Yi Jinn Industrial, you can compare the effects of market volatilities on International CSRC and Yi Jinn 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 International CSRC with a short position of Yi Jinn. Check out your portfolio center. Please also check ongoing floating volatility patterns of International CSRC and Yi Jinn.

Diversification Opportunities for International CSRC and Yi Jinn

0.3

Correlation Coefficient

International CSRC  Yi Jinn

Weak diversification

The 3 months correlation between International and 1457 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding International CSRC Investment and Yi Jinn Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yi Jinn Industrial and International CSRC 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 International CSRC Investment are associated (or correlated) with Yi Jinn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yi Jinn Industrial has no effect on the direction of International CSRC i.e., International CSRC and Yi Jinn go up and down completely randomly.

Pair Corralation between International CSRC and Yi Jinn

Assuming the 90 days trading horizon International CSRC Investment is expected to under-perform the Yi Jinn. In addition to that, International CSRC is 1.03 times more volatile than Yi Jinn Industrial. It trades about -0.07 of its total potential returns per unit of risk. Yi Jinn Industrial is currently generating about 0.01 per unit of volatility. If you would invest  1,865  in Yi Jinn Industrial on September 24, 2024 and sell it today you would earn a total of  60.00  from holding Yi Jinn Industrial or generate 3.22% return on investment over 90 days.

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

International CSRC Investment  vs.  Yi Jinn Industrial

International CSRC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International CSRC Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Yi Jinn Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yi Jinn Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Yi Jinn is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with International CSRC and Yi Jinn

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

The idea behind International CSRC Investment and Yi Jinn 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.