Correlation Between YiDong Electronics and Shenzhen SDG
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By analyzing existing cross correlation between YiDong Electronics Technology and Shenzhen SDG Information, you can compare the effects of market volatilities on YiDong Electronics and Shenzhen SDG 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 SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Shenzhen SDG.
Diversification Opportunities for YiDong Electronics and Shenzhen SDG
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YiDong and Shenzhen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information 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 SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Shenzhen SDG go up and down completely randomly.
Pair Corralation between YiDong Electronics and Shenzhen SDG
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.1 times more return on investment than Shenzhen SDG. However, YiDong Electronics is 1.1 times more volatile than Shenzhen SDG Information. It trades about 0.04 of its potential returns per unit of risk. Shenzhen SDG Information is currently generating about -0.03 per unit of risk. If you would invest 2,071 in YiDong Electronics Technology on September 14, 2024 and sell it today you would earn a total of 32.00 from holding YiDong Electronics Technology or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Shenzhen SDG Information
Performance |
| Timeline |
| YiDong Electronics |
| Shenzhen SDG Information |
YiDong Electronics and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Shenzhen SDG
The main advantage of trading using opposite YiDong Electronics and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Shenzhen SDG 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 SDG will offset losses from the drop in Shenzhen SDG's long position.| YiDong Electronics vs. Focus Media Information | YiDong Electronics vs. State Grid InformationCommunication | YiDong Electronics vs. Datang HuaYin Electric | YiDong Electronics vs. Jilin Jlu Communication |
| Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. Agricultural Bank of |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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