Correlation Between Yes Optoelectronics and Jiangsu Seagull
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By analyzing existing cross correlation between Yes Optoelectronics Co and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Yes Optoelectronics and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Optoelectronics and Jiangsu Seagull.
Diversification Opportunities for Yes Optoelectronics and Jiangsu Seagull
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yes and Jiangsu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yes Optoelectronics Co and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Yes Optoelectronics i.e., Yes Optoelectronics and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Yes Optoelectronics and Jiangsu Seagull
Assuming the 90 days trading horizon Yes Optoelectronics is expected to generate 3.83 times less return on investment than Jiangsu Seagull. But when comparing it to its historical volatility, Yes Optoelectronics Co is 1.39 times less risky than Jiangsu Seagull. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 940.00 in Jiangsu Seagull Cooling on September 25, 2024 and sell it today you would earn a total of 47.00 from holding Jiangsu Seagull Cooling or generate 5.0% 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. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Yes Optoelectronics |
| Jiangsu Seagull Cooling |
Yes Optoelectronics and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Optoelectronics and Jiangsu Seagull
The main advantage of trading using opposite Yes Optoelectronics and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Optoelectronics position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull'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 |
| Jiangsu Seagull vs. Chengdu Kanghua Biological | Jiangsu Seagull vs. Beijing Wantai Biological | Jiangsu Seagull vs. Suzhou Novoprotein Scientific | Jiangsu Seagull vs. Aluminum Corp of |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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