Correlation Between DO Home and YiDong Electronics
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By analyzing existing cross correlation between DO Home Collection and YiDong Electronics Technology, you can compare the effects of market volatilities on DO Home and YiDong Electronics 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 DO Home with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and YiDong Electronics.
Diversification Opportunities for DO Home and YiDong Electronics
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 002798 and YiDong is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and DO Home 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 DO Home Collection are associated (or correlated) with YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of DO Home i.e., DO Home and YiDong Electronics go up and down completely randomly.
Pair Corralation between DO Home and YiDong Electronics
Assuming the 90 days trading horizon DO Home Collection is expected to under-perform the YiDong Electronics. In addition to that, DO Home is 1.26 times more volatile than YiDong Electronics Technology. It trades about -0.24 of its total potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.13 per unit of volatility. If you would invest 2,126 in YiDong Electronics Technology on October 12, 2024 and sell it today you would earn a total of 213.00 from holding YiDong Electronics Technology or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Home Collection vs. YiDong Electronics Technology
Performance |
| Timeline |
| DO Home Collection |
| YiDong Electronics |
DO Home and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and YiDong Electronics
The main advantage of trading using opposite DO Home and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| DO Home vs. Chison Medical Technologies | DO Home vs. Tinavi Medical Technologies | DO Home vs. Chengdu B ray Media | DO Home vs. Threes Company Media |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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