Correlation Between Yunnan Hongxiang and Eastern Communications
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By analyzing existing cross correlation between Yunnan Hongxiang Yixintang and Eastern Communications Co, you can compare the effects of market volatilities on Yunnan Hongxiang and Eastern Communications 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 Yunnan Hongxiang with a short position of Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Hongxiang and Eastern Communications.
Diversification Opportunities for Yunnan Hongxiang and Eastern Communications
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Eastern is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Hongxiang Yixintang and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications and Yunnan Hongxiang 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 Yunnan Hongxiang Yixintang are associated (or correlated) with Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Yunnan Hongxiang i.e., Yunnan Hongxiang and Eastern Communications go up and down completely randomly.
Pair Corralation between Yunnan Hongxiang and Eastern Communications
Assuming the 90 days trading horizon Yunnan Hongxiang Yixintang is expected to generate 40.1 times more return on investment than Eastern Communications. However, Yunnan Hongxiang is 40.1 times more volatile than Eastern Communications Co. It trades about 0.08 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.01 per unit of risk. If you would invest 2,453 in Yunnan Hongxiang Yixintang on September 12, 2024 and sell it today you would lose (1,021) from holding Yunnan Hongxiang Yixintang or give up 41.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.69% |
| Values | Daily Returns |
Yunnan Hongxiang Yixintang vs. Eastern Communications Co
Performance |
| Timeline |
| Yunnan Hongxiang Yix |
| Eastern Communications |
Yunnan Hongxiang and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Hongxiang and Eastern Communications
The main advantage of trading using opposite Yunnan Hongxiang and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Hongxiang position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Yunnan Hongxiang vs. Integrated Electronic Systems | Yunnan Hongxiang vs. Shenzhen Clou Electronics | Yunnan Hongxiang vs. Fuzhou Rockchip Electronics | Yunnan Hongxiang vs. Jointo Energy Investment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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