Correlation Between YiDong Electronics and Arrow Home
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By analyzing existing cross correlation between YiDong Electronics Technology and Arrow Home Group, you can compare the effects of market volatilities on YiDong Electronics and Arrow Home 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 Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Arrow Home.
Diversification Opportunities for YiDong Electronics and Arrow Home
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YiDong and Arrow is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group 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 Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Arrow Home go up and down completely randomly.
Pair Corralation between YiDong Electronics and Arrow Home
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.88 times more return on investment than Arrow Home. However, YiDong Electronics is 1.88 times more volatile than Arrow Home Group. It trades about 0.04 of its potential returns per unit of risk. Arrow Home Group is currently generating about -0.1 per unit of risk. If you would invest 2,075 in YiDong Electronics Technology on October 30, 2024 and sell it today you would earn a total of 70.00 from holding YiDong Electronics Technology or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Arrow Home Group
Performance |
| Timeline |
| YiDong Electronics |
| Arrow Home Group |
YiDong Electronics and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Arrow Home
The main advantage of trading using opposite YiDong Electronics and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Arrow Home 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 Arrow Home will offset losses from the drop in Arrow Home's long position.| YiDong Electronics vs. Zhengzhou Coal Mining | YiDong Electronics vs. Shenyang Blue Silver | YiDong Electronics vs. XinJiang GuoTong Pipeline | YiDong Electronics vs. Jiangxi Naipu Mining |
| Arrow Home vs. Beijing New Building | Arrow Home vs. Zhejiang Weixing New | Arrow Home vs. Zhuzhou Kibing Group | Arrow Home vs. Xiamen Wanli Stone |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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