Correlation Between China Yuchai and Intevac

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

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

Diversification Opportunities for China Yuchai and Intevac

0.91

Correlation Coefficient

China Yuchai  Intevac

Almost no diversification

The 3 months correlation between China and Intevac is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Yuchai International and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac and China Yuchai 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 Yuchai International are associated (or correlated) with Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of China Yuchai i.e., China Yuchai and Intevac go up and down completely randomly.

Pair Corralation between China Yuchai and Intevac

If you would invest  1,614  in China Yuchai International on May 5, 2025 and sell it today you would earn a total of  621.00  from holding China Yuchai International or generate 38.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	1.59%
Values	Daily Returns

China Yuchai International  vs.  Intevac

China Yuchai Interna

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in China Yuchai International are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, China Yuchai exhibited solid returns over the last few months and may actually be approaching a breakup point.

Intevac

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intevac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Intevac is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with China Yuchai and Intevac

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

The idea behind China Yuchai International and Intevac 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.