Correlation Between Yes Optoelectronics and Caihong Display
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yes Optoelectronics Co and Caihong Display Devices, you can compare the effects of market volatilities on Yes Optoelectronics and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Optoelectronics and Caihong Display.
Diversification Opportunities for Yes Optoelectronics and Caihong Display
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yes and Caihong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Yes Optoelectronics Co and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Yes Optoelectronics i.e., Yes Optoelectronics and Caihong Display go up and down completely randomly.
Pair Corralation between Yes Optoelectronics and Caihong Display
Assuming the 90 days trading horizon Yes Optoelectronics Co is expected to under-perform the Caihong Display. In addition to that, Yes Optoelectronics is 2.02 times more volatile than Caihong Display Devices. It trades about -0.01 of its total potential returns per unit of risk. Caihong Display Devices is currently generating about 0.14 per unit of volatility. If you would invest 720.00 in Caihong Display Devices on October 9, 2024 and sell it today you would earn a total of 46.00 from holding Caihong Display Devices or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Optoelectronics Co vs. Caihong Display Devices
Performance |
| Timeline |
| Yes Optoelectronics |
| Caihong Display Devices |
Yes Optoelectronics and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Optoelectronics and Caihong Display
The main advantage of trading using opposite Yes Optoelectronics and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Optoelectronics position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.The idea behind Yes Optoelectronics Co and Caihong Display Devices pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Caihong Display vs. Bloomage Biotechnology Corp | Caihong Display vs. Wuhan Hvsen Biotechnology | Caihong Display vs. Anhui Jinhe Industrial | Caihong Display vs. Shandong Sanyuan Biotechnology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |