Correlation Between YiDong Electronics and Zhejiang Publishing
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By analyzing existing cross correlation between YiDong Electronics Technology and Zhejiang Publishing Media, you can compare the effects of market volatilities on YiDong Electronics and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Zhejiang Publishing.
Diversification Opportunities for YiDong Electronics and Zhejiang Publishing
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between YiDong and Zhejiang is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between YiDong Electronics and Zhejiang Publishing
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 2.83 times more return on investment than Zhejiang Publishing. However, YiDong Electronics is 2.83 times more volatile than Zhejiang Publishing Media. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about -0.48 per unit of risk. If you would invest 2,048 in YiDong Electronics Technology on October 16, 2024 and sell it today you would earn a total of 72.00 from holding YiDong Electronics Technology or generate 3.52% 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. Zhejiang Publishing Media
Performance |
| Timeline |
| YiDong Electronics |
| Zhejiang Publishing Media |
YiDong Electronics and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Zhejiang Publishing
The main advantage of trading using opposite YiDong Electronics and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Zhejiang Publishing 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| YiDong Electronics vs. Biwin Storage Technology | YiDong Electronics vs. PetroChina Co Ltd | YiDong Electronics vs. Industrial and Commercial | YiDong Electronics vs. China Construction Bank |
| Zhejiang Publishing vs. YiDong Electronics Technology | Zhejiang Publishing vs. Anhui Shiny Electronic | Zhejiang Publishing vs. TongFu Microelectronics Co | Zhejiang Publishing vs. Aurora Optoelectronics 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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