Correlation Between Ningxia Younglight and Yes Optoelectronics
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Yes Optoelectronics Co, you can compare the effects of market volatilities on Ningxia Younglight 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 Ningxia Younglight with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Yes Optoelectronics.
Diversification Opportunities for Ningxia Younglight and Yes Optoelectronics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Yes is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Ningxia Younglight 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 Ningxia Younglight Chemicals 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 Ningxia Younglight i.e., Ningxia Younglight and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Yes Optoelectronics
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 0.52 times more return on investment than Yes Optoelectronics. However, Ningxia Younglight Chemicals is 1.91 times less risky than Yes Optoelectronics. It trades about -0.16 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.32 per unit of risk. If you would invest 816.00 in Ningxia Younglight Chemicals on October 28, 2024 and sell it today you would lose (67.00) from holding Ningxia Younglight Chemicals or give up 8.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Ningxia Younglight |
| Yes Optoelectronics |
Ningxia Younglight and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Yes Optoelectronics
The main advantage of trading using opposite Ningxia Younglight and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight 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.| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
| Yes Optoelectronics vs. Runjian Communication Co | Yes Optoelectronics vs. Haima Automobile Group | Yes Optoelectronics vs. Dazhong Transportation Group | Yes Optoelectronics vs. Jiangsu Jinling Sports |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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