Correlation Between Guangzhou Ruoyuchen and YiDong Electronics
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and YiDong Electronics Technology, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and YiDong Electronics 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 Guangzhou Ruoyuchen with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and YiDong Electronics.
Diversification Opportunities for Guangzhou Ruoyuchen and YiDong Electronics
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and YiDong is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen Information are associated (or correlated) with YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and YiDong Electronics go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and YiDong Electronics
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.4 times more return on investment than YiDong Electronics. However, Guangzhou Ruoyuchen is 1.4 times more volatile than YiDong Electronics Technology. It trades about 0.2 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.15 per unit of risk. If you would invest 2,254 in Guangzhou Ruoyuchen Information on October 11, 2024 and sell it today you would earn a total of 542.00 from holding Guangzhou Ruoyuchen Information or generate 24.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. YiDong Electronics Technology
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| YiDong Electronics |
Guangzhou Ruoyuchen and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and YiDong Electronics
The main advantage of trading using opposite Guangzhou Ruoyuchen and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| Guangzhou Ruoyuchen vs. Anhui Gujing Distillery | Guangzhou Ruoyuchen vs. Hangzhou Gaoxin Rubber | Guangzhou Ruoyuchen vs. Sichuan Jinshi Technology | Guangzhou Ruoyuchen vs. Cansino Biologics |
| YiDong Electronics vs. Guangzhou Ruoyuchen Information | YiDong Electronics vs. Emdoor Information Co | YiDong Electronics vs. Beijing Sanyuan Foods | YiDong Electronics vs. Qingdao Foods Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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