Correlation Between Shengda Mining and Yes Optoelectronics
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By analyzing existing cross correlation between Shengda Mining Co and Yes Optoelectronics Co, you can compare the effects of market volatilities on Shengda Mining and Yes Optoelectronics 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 Shengda Mining with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Yes Optoelectronics.
Diversification Opportunities for Shengda Mining and Yes Optoelectronics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shengda and Yes is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Shengda Mining 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 Shengda Mining Co are associated (or correlated) with Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of Shengda Mining i.e., Shengda Mining and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Shengda Mining and Yes Optoelectronics
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.29 times more return on investment than Yes Optoelectronics. However, Shengda Mining Co is 3.5 times less risky than Yes Optoelectronics. It trades about -0.18 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.23 per unit of risk. If you would invest 1,323 in Shengda Mining Co on October 14, 2024 and sell it today you would lose (75.00) from holding Shengda Mining Co or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Shengda Mining |
| Yes Optoelectronics |
Shengda Mining and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Yes Optoelectronics
The main advantage of trading using opposite Shengda Mining and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Shandong Gold Mining |
| Yes Optoelectronics vs. Sihui Fuji Electronics | Yes Optoelectronics vs. Shengda Mining Co | Yes Optoelectronics vs. Hainan Mining Co | Yes Optoelectronics vs. Integrated Electronic Systems |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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