Correlation Between Emdoor Information and Yes Optoelectronics
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By analyzing existing cross correlation between Emdoor Information Co and Yes Optoelectronics Co, you can compare the effects of market volatilities on Emdoor Information 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 Emdoor Information with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Yes Optoelectronics.
Diversification Opportunities for Emdoor Information and Yes Optoelectronics
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Emdoor and Yes is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information 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 Emdoor Information 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 Emdoor Information 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 Emdoor Information i.e., Emdoor Information and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Emdoor Information and Yes Optoelectronics
Assuming the 90 days trading horizon Emdoor Information Co is expected to generate 0.97 times more return on investment than Yes Optoelectronics. However, Emdoor Information Co is 1.03 times less risky than Yes Optoelectronics. It trades about -0.09 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.19 per unit of risk. If you would invest 5,285 in Emdoor Information Co on October 25, 2024 and sell it today you would lose (573.00) from holding Emdoor Information Co or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Emdoor Information |
| Yes Optoelectronics |
Emdoor Information and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Yes Optoelectronics
The main advantage of trading using opposite Emdoor Information and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information 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.| Emdoor Information vs. PetroChina Co Ltd | Emdoor Information vs. Gansu Jiu Steel | Emdoor Information vs. Ming Yang Smart | Emdoor Information vs. Aba Chemicals Corp |
| Yes Optoelectronics vs. Emdoor Information Co | Yes Optoelectronics vs. Shenzhen SDG Information | Yes Optoelectronics vs. China Publishing Media | Yes Optoelectronics vs. Sportsoul Co Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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