Correlation Between YiDong Electronics and Tongling Nonferrous
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By analyzing existing cross correlation between YiDong Electronics Technology and Tongling Nonferrous Metals, you can compare the effects of market volatilities on YiDong Electronics and Tongling Nonferrous 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 Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Tongling Nonferrous.
Diversification Opportunities for YiDong Electronics and Tongling Nonferrous
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YiDong and Tongling is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous 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 Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between YiDong Electronics and Tongling Nonferrous
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.84 times more return on investment than Tongling Nonferrous. However, YiDong Electronics is 1.84 times more volatile than Tongling Nonferrous Metals. It trades about 0.02 of its potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.0 per unit of risk. If you would invest 2,270 in YiDong Electronics Technology on October 11, 2024 and sell it today you would earn a total of 119.00 from holding YiDong Electronics Technology or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| YiDong Electronics |
| Tongling Nonferrous |
YiDong Electronics and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Tongling Nonferrous
The main advantage of trading using opposite YiDong Electronics and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| YiDong Electronics vs. Guangzhou Ruoyuchen Information | YiDong Electronics vs. Emdoor Information Co | YiDong Electronics vs. Beijing Sanyuan Foods | YiDong Electronics vs. Qingdao Foods Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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