Correlation Between YiDong Electronics and Shenzhen Centralcon
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By analyzing existing cross correlation between YiDong Electronics Technology and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on YiDong Electronics and Shenzhen Centralcon 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 YiDong Electronics with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Shenzhen Centralcon.
Diversification Opportunities for YiDong Electronics and Shenzhen Centralcon
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YiDong and Shenzhen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and YiDong Electronics 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 YiDong Electronics Technology are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between YiDong Electronics and Shenzhen Centralcon
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.21 times more return on investment than Shenzhen Centralcon. However, YiDong Electronics is 1.21 times more volatile than Shenzhen Centralcon Investment. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.02 per unit of risk. If you would invest 2,351 in YiDong Electronics Technology on October 28, 2024 and sell it today you would earn a total of 61.00 from holding YiDong Electronics Technology or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| YiDong Electronics |
| Shenzhen Centralcon |
YiDong Electronics and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Shenzhen Centralcon
The main advantage of trading using opposite YiDong Electronics and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| YiDong Electronics vs. Weihai Honglin Electronic | YiDong Electronics vs. JCHX Mining Management | YiDong Electronics vs. Integrated Electronic Systems | YiDong Electronics vs. Guangdong Ellington Electronics |
| Shenzhen Centralcon vs. Agricultural Bank of | Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. China Construction Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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