Correlation Between Yingde Greatchem and Caihong Display
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Caihong Display Devices, you can compare the effects of market volatilities on Yingde Greatchem and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Caihong Display.
Diversification Opportunities for Yingde Greatchem and Caihong Display
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yingde and Caihong is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Caihong Display go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Caihong Display
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Caihong Display. But the stock apears to be less risky and, when comparing its historical volatility, Yingde Greatchem Chemicals is 1.33 times less risky than Caihong Display. The stock trades about -0.1 of its potential returns per unit of risk. The Caihong Display Devices is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 697.00 in Caihong Display Devices on October 30, 2024 and sell it today you would earn a total of 151.00 from holding Caihong Display Devices or generate 21.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Caihong Display Devices
Performance |
| Timeline |
| Yingde Greatchem Che |
| Caihong Display Devices |
Yingde Greatchem and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Caihong Display
The main advantage of trading using opposite Yingde Greatchem and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Caihong Display vs. Anshan Senyuan Road | Caihong Display vs. Longjian Road Bridge | Caihong Display vs. Threes Company Media | Caihong Display vs. Shanghai Xinhua Media |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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