Correlation Between YiDong Electronics and Guocheng Mining
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By analyzing existing cross correlation between YiDong Electronics Technology and Guocheng Mining Co, you can compare the effects of market volatilities on YiDong Electronics and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Guocheng Mining.
Diversification Opportunities for YiDong Electronics and Guocheng Mining
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between YiDong and Guocheng is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Guocheng Mining go up and down completely randomly.
Pair Corralation between YiDong Electronics and Guocheng Mining
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.11 times more return on investment than Guocheng Mining. However, YiDong Electronics is 1.11 times more volatile than Guocheng Mining Co. It trades about 0.09 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.36 per unit of risk. If you would invest 2,057 in YiDong Electronics Technology on October 14, 2024 and sell it today you would earn a total of 136.00 from holding YiDong Electronics Technology or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Guocheng Mining Co
Performance |
| Timeline |
| YiDong Electronics |
| Guocheng Mining |
YiDong Electronics and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Guocheng Mining
The main advantage of trading using opposite YiDong Electronics and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| YiDong Electronics vs. GuoChuang Software Co | YiDong Electronics vs. Zhongshan Public Utilities | YiDong Electronics vs. Unisplendour Corp | YiDong Electronics vs. Xiamen Bank Co |
| Guocheng Mining vs. Anhui Shiny Electronic | Guocheng Mining vs. YiDong Electronics Technology | Guocheng Mining vs. Shenzhen Zhongzhuang Construction | Guocheng Mining vs. Xinya Electronic 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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