Correlation Between Zotye Automobile and Yes Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zotye Automobile Co and Yes Optoelectronics Co, you can compare the effects of market volatilities on Zotye Automobile 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 Zotye Automobile with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Yes Optoelectronics.
Diversification Opportunities for Zotye Automobile and Yes Optoelectronics
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Yes is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile 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 Zotye Automobile 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 Zotye Automobile 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 Zotye Automobile i.e., Zotye Automobile and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Zotye Automobile and Yes Optoelectronics
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Yes Optoelectronics. But the stock apears to be less risky and, when comparing its historical volatility, Zotye Automobile Co is 1.06 times less risky than Yes Optoelectronics. The stock trades about -0.01 of its potential returns per unit of risk. The Yes Optoelectronics Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,563 in Yes Optoelectronics Co on September 26, 2024 and sell it today you would earn a total of 1,030 from holding Yes Optoelectronics Co or generate 65.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Zotye Automobile |
| Yes Optoelectronics |
Zotye Automobile and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Yes Optoelectronics
The main advantage of trading using opposite Zotye Automobile and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile 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.| Zotye Automobile vs. New China Life | Zotye Automobile vs. Ming Yang Smart | Zotye Automobile vs. 159681 | Zotye Automobile vs. 159005 |
| Yes Optoelectronics vs. Industrial and Commercial | Yes Optoelectronics vs. China Construction Bank | Yes Optoelectronics vs. Agricultural Bank of | Yes Optoelectronics vs. Bank of China |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |