Correlation Between YiDong Electronics and Shenyang Huitian
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By analyzing existing cross correlation between YiDong Electronics Technology and Shenyang Huitian Thermal, you can compare the effects of market volatilities on YiDong Electronics and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Shenyang Huitian.
Diversification Opportunities for YiDong Electronics and Shenyang Huitian
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YiDong and Shenyang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Shenyang Huitian go up and down completely randomly.
Pair Corralation between YiDong Electronics and Shenyang Huitian
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.11 times more return on investment than Shenyang Huitian. However, YiDong Electronics is 1.11 times more volatile than Shenyang Huitian Thermal. It trades about 0.05 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.02 per unit of risk. If you would invest 2,055 in YiDong Electronics Technology on September 13, 2024 and sell it today you would earn a total of 48.00 from holding YiDong Electronics Technology or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| YiDong Electronics |
| Shenyang Huitian Thermal |
YiDong Electronics and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Shenyang Huitian
The main advantage of trading using opposite YiDong Electronics and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian'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 |
| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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