Correlation Between Maoming Petro and YiDong Electronics
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and YiDong Electronics Technology, you can compare the effects of market volatilities on Maoming Petro and YiDong Electronics 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 Maoming Petro with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and YiDong Electronics.
Diversification Opportunities for Maoming Petro and YiDong Electronics
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maoming and YiDong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and Maoming Petro 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 Maoming Petro Chemical Shihua are associated (or correlated) with YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of Maoming Petro i.e., Maoming Petro and YiDong Electronics go up and down completely randomly.
Pair Corralation between Maoming Petro and YiDong Electronics
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 0.71 times more return on investment than YiDong Electronics. However, Maoming Petro Chemical Shihua is 1.41 times less risky than YiDong Electronics. It trades about 0.16 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.05 per unit of risk. If you would invest 400.00 in Maoming Petro Chemical Shihua on September 15, 2024 and sell it today you would earn a total of 25.00 from holding Maoming Petro Chemical Shihua or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. YiDong Electronics Technology
Performance |
| Timeline |
| Maoming Petro Chemical |
| YiDong Electronics |
Maoming Petro and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and YiDong Electronics
The main advantage of trading using opposite Maoming Petro and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| Maoming Petro vs. Hunan Mendale Hometextile | Maoming Petro vs. DO Home Collection | Maoming Petro vs. Chongqing Changan Automobile | Maoming Petro vs. Guangdong Qunxing Toys |
| YiDong Electronics vs. Xinxiang Chemical Fiber | YiDong Electronics vs. Quectel Wireless Solutions | YiDong Electronics vs. China National Software | YiDong Electronics vs. Maoming Petro Chemical Shihua |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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