Correlation Between Yes Optoelectronics and New China
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By analyzing existing cross correlation between Yes Optoelectronics Co and New China Life, you can compare the effects of market volatilities on Yes Optoelectronics and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Optoelectronics and New China.
Diversification Opportunities for Yes Optoelectronics and New China
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yes and New is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Yes Optoelectronics Co and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Yes Optoelectronics i.e., Yes Optoelectronics and New China go up and down completely randomly.
Pair Corralation between Yes Optoelectronics and New China
Assuming the 90 days trading horizon Yes Optoelectronics is expected to generate 1.08 times less return on investment than New China. In addition to that, Yes Optoelectronics is 1.75 times more volatile than New China Life. It trades about 0.03 of its total potential returns per unit of risk. New China Life is currently generating about 0.05 per unit of volatility. If you would invest 2,932 in New China Life on October 30, 2024 and sell it today you would earn a total of 1,831 from holding New China Life or generate 62.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Yes Optoelectronics Co vs. New China Life
Performance |
| Timeline |
| Yes Optoelectronics |
| New China Life |
Yes Optoelectronics and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Optoelectronics and New China
The main advantage of trading using opposite Yes Optoelectronics and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Optoelectronics position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Yes Optoelectronics vs. Shanghai Jinfeng Wine | Yes Optoelectronics vs. Chengtun Mining Group | Yes Optoelectronics vs. Jinhui Mining Co | Yes Optoelectronics vs. Guangdong Silvere Sci |
| New China vs. Citic Offshore Helicopter | New China vs. Northern United Publishing | New China vs. Tibet Huayu Mining | New China vs. Xinjiang Baodi Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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