Correlation Between YiDong Electronics and China Petroleum
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By analyzing existing cross correlation between YiDong Electronics Technology and China Petroleum Chemical, you can compare the effects of market volatilities on YiDong Electronics and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and China Petroleum.
Diversification Opportunities for YiDong Electronics and China Petroleum
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between YiDong and China is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and China Petroleum go up and down completely randomly.
Pair Corralation between YiDong Electronics and China Petroleum
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 5.1 times more return on investment than China Petroleum. However, YiDong Electronics is 5.1 times more volatile than China Petroleum Chemical. It trades about 0.18 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.29 per unit of risk. If you would invest 2,060 in YiDong Electronics Technology on October 24, 2024 and sell it today you would earn a total of 432.00 from holding YiDong Electronics Technology or generate 20.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. China Petroleum Chemical
Performance |
| Timeline |
| YiDong Electronics |
| China Petroleum Chemical |
YiDong Electronics and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and China Petroleum
The main advantage of trading using opposite YiDong Electronics and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| YiDong Electronics vs. Pengxin International Mining | YiDong Electronics vs. Shenzhen Silver Basis | YiDong Electronics vs. Shandong Rike Chemical | YiDong Electronics vs. Yingde Greatchem Chemicals |
| China Petroleum vs. Iat Automobile Technology | China Petroleum vs. Dhc Software Co | China Petroleum vs. Digiwin Software Co | China Petroleum vs. YiDong Electronics Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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