Correlation Between China YiBai and Blockchain Industries

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both China YiBai and Blockchain Industries 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 YiBai and Blockchain Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China YiBai United and Blockchain Industries, you can compare the effects of market volatilities on China YiBai and Blockchain Industries 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 YiBai with a short position of Blockchain Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of China YiBai and Blockchain Industries.

Diversification Opportunities for China YiBai and Blockchain Industries

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between China and Blockchain is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding China YiBai United and Blockchain Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Industries and China YiBai 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 YiBai United are associated (or correlated) with Blockchain Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Industries has no effect on the direction of China YiBai i.e., China YiBai and Blockchain Industries go up and down completely randomly.

Pair Corralation between China YiBai and Blockchain Industries

Given the investment horizon of 90 days China YiBai is expected to generate 1.2 times less return on investment than Blockchain Industries. In addition to that, China YiBai is 2.31 times more volatile than Blockchain Industries. It trades about 0.06 of its total potential returns per unit of risk. Blockchain Industries is currently generating about 0.16 per unit of volatility. If you would invest  0.70  in Blockchain Industries on September 11, 2025 and sell it today you would earn a total of  1.00  from holding Blockchain Industries or generate 142.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

China YiBai United  vs.  Blockchain Industries

 Performance 
       Timeline  
China YiBai United 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in China YiBai United are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical and fundamental indicators, China YiBai demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Blockchain Industries 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Blockchain Industries are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Blockchain Industries demonstrated solid returns over the last few months and may actually be approaching a breakup point.

China YiBai and Blockchain Industries Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with China YiBai and Blockchain Industries

The main advantage of trading using opposite China YiBai and Blockchain Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China YiBai position performs unexpectedly, Blockchain Industries 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 Blockchain Industries will offset losses from the drop in Blockchain Industries' long position.
The idea behind China YiBai United and Blockchain Industries 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.
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities