Correlation Between Yantai Moon and Arrow Home
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By analyzing existing cross correlation between Yantai Moon Co and Arrow Home Group, you can compare the effects of market volatilities on Yantai Moon and Arrow Home 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 Yantai Moon with a short position of Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai Moon and Arrow Home.
Diversification Opportunities for Yantai Moon and Arrow Home
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yantai and Arrow is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Yantai Moon Co and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group and Yantai Moon 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 Yantai Moon Co are associated (or correlated) with Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of Yantai Moon i.e., Yantai Moon and Arrow Home go up and down completely randomly.
Pair Corralation between Yantai Moon and Arrow Home
Assuming the 90 days trading horizon Yantai Moon Co is expected to generate 1.72 times more return on investment than Arrow Home. However, Yantai Moon is 1.72 times more volatile than Arrow Home Group. It trades about 0.02 of its potential returns per unit of risk. Arrow Home Group is currently generating about -0.24 per unit of risk. If you would invest 1,020 in Yantai Moon Co on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Yantai Moon Co or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai Moon Co vs. Arrow Home Group
Performance |
| Timeline |
| Yantai Moon |
| Arrow Home Group |
Yantai Moon and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai Moon and Arrow Home
The main advantage of trading using opposite Yantai Moon and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai Moon position performs unexpectedly, Arrow Home 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 Arrow Home will offset losses from the drop in Arrow Home's long position.| Yantai Moon vs. JiShi Media Co | Yantai Moon vs. Duzhe Publishing Media | Yantai Moon vs. Northking Information Technology | Yantai Moon vs. Dhc Software Co |
| Arrow Home vs. Luoyang Glass | Arrow Home vs. Gansu Jiu Steel | Arrow Home vs. Shenzhen MTC Co | Arrow Home vs. Ming Yang Smart |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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