Correlation Between YLZ Information and DR
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By analyzing existing cross correlation between YLZ Information Tech and DR Limited, you can compare the effects of market volatilities on YLZ Information and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and DR.
Diversification Opportunities for YLZ Information and DR
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between YLZ and DR is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of YLZ Information i.e., YLZ Information and DR go up and down completely randomly.
Pair Corralation between YLZ Information and DR
Assuming the 90 days trading horizon YLZ Information Tech is expected to generate 1.18 times more return on investment than DR. However, YLZ Information is 1.18 times more volatile than DR Limited. It trades about 0.14 of its potential returns per unit of risk. DR Limited is currently generating about 0.13 per unit of risk. If you would invest 337.00 in YLZ Information Tech on September 13, 2024 and sell it today you would earn a total of 56.00 from holding YLZ Information Tech or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YLZ Information Tech vs. DR Limited
Performance |
| Timeline |
| YLZ Information Tech |
| DR Limited |
YLZ Information and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and DR
The main advantage of trading using opposite YLZ Information and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information position performs unexpectedly, DR 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 DR will offset losses from the drop in DR's long position.| YLZ Information vs. Ming Yang Smart | YLZ Information vs. 159681 | YLZ Information vs. 159005 | YLZ Information vs. Loctek Ergonomic Technology |
| DR vs. YLZ Information Tech | DR vs. Digital China Information | DR vs. CITIC Guoan Information | DR vs. ZJBC Information Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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