Correlation Between Yes Optoelectronics and Guangdong Tianhe
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By analyzing existing cross correlation between Yes Optoelectronics Co and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Yes Optoelectronics and Guangdong Tianhe 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 Yes Optoelectronics with a short position of Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Optoelectronics and Guangdong Tianhe.
Diversification Opportunities for Yes Optoelectronics and Guangdong Tianhe
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yes and Guangdong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Yes Optoelectronics Co and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr and Yes Optoelectronics 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 Yes Optoelectronics Co are associated (or correlated) with Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Yes Optoelectronics i.e., Yes Optoelectronics and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Yes Optoelectronics and Guangdong Tianhe
Assuming the 90 days trading horizon Yes Optoelectronics Co is expected to under-perform the Guangdong Tianhe. In addition to that, Yes Optoelectronics is 1.8 times more volatile than Guangdong Tianhe Agricultural. It trades about -0.23 of its total potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.34 per unit of volatility. If you would invest 705.00 in Guangdong Tianhe Agricultural on October 14, 2024 and sell it today you would lose (140.00) from holding Guangdong Tianhe Agricultural or give up 19.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Optoelectronics Co vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Yes Optoelectronics |
| Guangdong Tianhe Agr |
Yes Optoelectronics and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Optoelectronics and Guangdong Tianhe
The main advantage of trading using opposite Yes Optoelectronics and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Optoelectronics position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Yes Optoelectronics vs. Ningxia Younglight Chemicals | Yes Optoelectronics vs. Porton Fine Chemicals | Yes Optoelectronics vs. Duzhe Publishing Media | Yes Optoelectronics vs. Changjiang Publishing Media |
| Guangdong Tianhe vs. Epoxy Base Electronic | Guangdong Tianhe vs. Eit Environmental Development | Guangdong Tianhe vs. Fujian Nanwang Environment | Guangdong Tianhe vs. Tongxing Environmental Protection |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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