Correlation Between Yes Optoelectronics and 516220
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By analyzing existing cross correlation between Yes Optoelectronics Co and 516220, you can compare the effects of market volatilities on Yes Optoelectronics and 516220 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 516220. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Optoelectronics and 516220.
Diversification Opportunities for Yes Optoelectronics and 516220
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yes and 516220 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Yes Optoelectronics Co and 516220 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 516220 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 516220. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 516220 has no effect on the direction of Yes Optoelectronics i.e., Yes Optoelectronics and 516220 go up and down completely randomly.
Pair Corralation between Yes Optoelectronics and 516220
Assuming the 90 days trading horizon Yes Optoelectronics Co is expected to generate 2.06 times more return on investment than 516220. However, Yes Optoelectronics is 2.06 times more volatile than 516220. It trades about 0.03 of its potential returns per unit of risk. 516220 is currently generating about 0.01 per unit of risk. If you would invest 2,568 in Yes Optoelectronics Co on September 26, 2024 and sell it today you would earn a total of 25.00 from holding Yes Optoelectronics Co or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Optoelectronics Co vs. 516220
Performance |
| Timeline |
| Yes Optoelectronics |
| 516220 |
Yes Optoelectronics and 516220 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Optoelectronics and 516220
The main advantage of trading using opposite Yes Optoelectronics and 516220 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Optoelectronics position performs unexpectedly, 516220 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 516220 will offset losses from the drop in 516220's long position.| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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