Correlation Between YLZ Information and Wenzhou Hongfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between YLZ Information Tech and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on YLZ Information and Wenzhou Hongfeng 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 YLZ Information with a short position of Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and Wenzhou Hongfeng.
Diversification Opportunities for YLZ Information and Wenzhou Hongfeng
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YLZ and Wenzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele and YLZ Information 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 YLZ Information Tech are associated (or correlated) with Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of YLZ Information i.e., YLZ Information and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between YLZ Information and Wenzhou Hongfeng
Assuming the 90 days trading horizon YLZ Information Tech is expected to generate 0.72 times more return on investment than Wenzhou Hongfeng. However, YLZ Information Tech is 1.38 times less risky than Wenzhou Hongfeng. It trades about 0.11 of its potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about -0.01 per unit of risk. If you would invest 375.00 in YLZ Information Tech on September 12, 2024 and sell it today you would earn a total of 18.00 from holding YLZ Information Tech or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YLZ Information Tech vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| YLZ Information Tech |
| Wenzhou Hongfeng Ele |
YLZ Information and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and Wenzhou Hongfeng
The main advantage of trading using opposite YLZ Information and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| YLZ Information vs. Gansu Jiu Steel | YLZ Information vs. Shandong Mining Machinery | YLZ Information vs. Aba Chemicals Corp | YLZ Information vs. BlueFocus Communication Group |
| Wenzhou Hongfeng vs. YLZ Information Tech | Wenzhou Hongfeng vs. Xiamen Goldenhome Co | Wenzhou Hongfeng vs. ButOne Information Corp | Wenzhou Hongfeng vs. Nanxing Furniture Machinery |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |