Correlation Between YiDong Electronics and Ningbo Tech
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By analyzing existing cross correlation between YiDong Electronics Technology and Ningbo Tech Bank Co, you can compare the effects of market volatilities on YiDong Electronics and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Ningbo Tech.
Diversification Opportunities for YiDong Electronics and Ningbo Tech
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between YiDong and Ningbo is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Ningbo Tech go up and down completely randomly.
Pair Corralation between YiDong Electronics and Ningbo Tech
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.89 times more return on investment than Ningbo Tech. However, YiDong Electronics is 1.89 times more volatile than Ningbo Tech Bank Co. It trades about 0.1 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.17 per unit of risk. If you would invest 2,048 in YiDong Electronics Technology on October 17, 2024 and sell it today you would earn a total of 166.00 from holding YiDong Electronics Technology or generate 8.11% 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. Ningbo Tech Bank Co
Performance |
| Timeline |
| YiDong Electronics |
| Ningbo Tech Bank |
YiDong Electronics and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Ningbo Tech
The main advantage of trading using opposite YiDong Electronics and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| YiDong Electronics vs. Wuhan Yangtze Communication | YiDong Electronics vs. Offshore Oil Engineering | YiDong Electronics vs. Eastern Communications Co | YiDong Electronics vs. Jonjee Hi tech Industrial |
| Ningbo Tech vs. YiDong Electronics Technology | Ningbo Tech vs. Nantong Haixing Electronics | Ningbo Tech vs. Winner Medical Co | Ningbo Tech vs. Beijing YanDong MicroElectronic |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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