Correlation Between Hunan Nanling and Yes Optoelectronics
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By analyzing existing cross correlation between Hunan Nanling Industrial and Yes Optoelectronics Co, you can compare the effects of market volatilities on Hunan Nanling 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 Hunan Nanling with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Nanling and Yes Optoelectronics.
Diversification Opportunities for Hunan Nanling and Yes Optoelectronics
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Yes is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Nanling Industrial and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Hunan Nanling 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 Hunan Nanling Industrial 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 Hunan Nanling i.e., Hunan Nanling and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Hunan Nanling and Yes Optoelectronics
Assuming the 90 days trading horizon Hunan Nanling Industrial is expected to generate 0.83 times more return on investment than Yes Optoelectronics. However, Hunan Nanling Industrial is 1.21 times less risky than Yes Optoelectronics. It trades about 0.14 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about 0.03 per unit of risk. If you would invest 1,226 in Hunan Nanling Industrial on September 25, 2024 and sell it today you would earn a total of 70.00 from holding Hunan Nanling Industrial or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hunan Nanling Industrial vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Hunan Nanling Industrial |
| Yes Optoelectronics |
Hunan Nanling and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Nanling and Yes Optoelectronics
The main advantage of trading using opposite Hunan Nanling and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Nanling 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.| Hunan Nanling vs. Zijin Mining Group | Hunan Nanling vs. Wanhua Chemical Group | Hunan Nanling vs. Baoshan Iron Steel | Hunan Nanling vs. Shandong Gold Mining |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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