Correlation Between YiDong Electronics and Jonjee Hi
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By analyzing existing cross correlation between YiDong Electronics Technology and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on YiDong Electronics and Jonjee Hi 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 Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Jonjee Hi.
Diversification Opportunities for YiDong Electronics and Jonjee Hi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between YiDong and Jonjee is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Jonjee Hi go up and down completely randomly.
Pair Corralation between YiDong Electronics and Jonjee Hi
Assuming the 90 days trading horizon YiDong Electronics is expected to generate 2.86 times less return on investment than Jonjee Hi. But when comparing it to its historical volatility, YiDong Electronics Technology is 1.0 times less risky than Jonjee Hi. It trades about 0.04 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,364 in Jonjee Hi tech Industrial on September 14, 2024 and sell it today you would earn a total of 137.00 from holding Jonjee Hi tech Industrial or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| YiDong Electronics |
| Jonjee Hi tech |
YiDong Electronics and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Jonjee Hi
The main advantage of trading using opposite YiDong Electronics and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| YiDong Electronics vs. Focus Media Information | YiDong Electronics vs. State Grid InformationCommunication | YiDong Electronics vs. Datang HuaYin Electric | YiDong Electronics vs. Jilin Jlu Communication |
| Jonjee Hi vs. HUAQIN TECHNOLOGY LTD | Jonjee Hi vs. Jinhe Biotechnology Co | Jonjee Hi vs. Linewell Software Co | Jonjee Hi vs. Yuan Longping High tech |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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