Correlation Between YiDong Electronics and Guangdong Brandmax
Specify exactly 2 symbols:
By analyzing existing cross correlation between YiDong Electronics Technology and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on YiDong Electronics and Guangdong Brandmax 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 Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Guangdong Brandmax.
Diversification Opportunities for YiDong Electronics and Guangdong Brandmax
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between YiDong and Guangdong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between YiDong Electronics and Guangdong Brandmax
Assuming the 90 days trading horizon YiDong Electronics is expected to generate 3.69 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, YiDong Electronics Technology is 1.55 times less risky than Guangdong Brandmax. It trades about 0.07 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 887.00 in Guangdong Brandmax Marketing on September 13, 2024 and sell it today you would earn a total of 133.00 from holding Guangdong Brandmax Marketing or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Guangdong Brandmax Marketing
Performance |
| Timeline |
| YiDong Electronics |
| Guangdong Brandmax |
YiDong Electronics and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Guangdong Brandmax
The main advantage of trading using opposite YiDong Electronics and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Guangdong Brandmax 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 Guangdong Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| YiDong Electronics vs. Industrial and Commercial | YiDong Electronics vs. Agricultural Bank of | YiDong Electronics vs. China Construction Bank | YiDong Electronics vs. Bank of China |
| Guangdong Brandmax vs. Jiangsu Yanghe Brewery | Guangdong Brandmax vs. Jiangyin Jianghua Microelectronics | Guangdong Brandmax vs. YiDong Electronics Technology | Guangdong Brandmax vs. Tsingtao Brewery 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |