Correlation Between Yingde Greatchem and Invengo Information
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Invengo Information Technology, you can compare the effects of market volatilities on Yingde Greatchem and Invengo Information 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 Yingde Greatchem with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Invengo Information.
Diversification Opportunities for Yingde Greatchem and Invengo Information
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yingde and Invengo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Invengo Information go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Invengo Information
Assuming the 90 days trading horizon Yingde Greatchem is expected to generate 3.9 times less return on investment than Invengo Information. But when comparing it to its historical volatility, Yingde Greatchem Chemicals is 2.71 times less risky than Invengo Information. It trades about 0.07 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 564.00 in Invengo Information Technology on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Invengo Information Technology or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Invengo Information Technology
Performance |
| Timeline |
| Yingde Greatchem Che |
| Invengo Information |
Yingde Greatchem and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Invengo Information
The main advantage of trading using opposite Yingde Greatchem and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Hoshine Silicon Ind |
| Invengo Information vs. Ningbo MedicalSystem Biotechnology | Invengo Information vs. Qilu Bank Co | Invengo Information vs. Bloomage Biotechnology Corp | Invengo Information vs. Shandong Longquan Pipeline |
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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