Correlation Between YiDong Electronics and Shenzhen Kexin
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By analyzing existing cross correlation between YiDong Electronics Technology and Shenzhen Kexin Communication, you can compare the effects of market volatilities on YiDong Electronics and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Shenzhen Kexin.
Diversification Opportunities for YiDong Electronics and Shenzhen Kexin
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YiDong and Shenzhen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between YiDong Electronics and Shenzhen Kexin
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.2 times more return on investment than Shenzhen Kexin. However, YiDong Electronics is 1.2 times more volatile than Shenzhen Kexin Communication. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.28 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| YiDong Electronics |
| Shenzhen Kexin Commu |
YiDong Electronics and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Shenzhen Kexin
The main advantage of trading using opposite YiDong Electronics and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin'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 |
| Shenzhen Kexin vs. YiDong Electronics Technology | Shenzhen Kexin vs. Success Electronics | Shenzhen Kexin vs. Beijing Yanjing Brewery | Shenzhen Kexin vs. Tianshan Aluminum Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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