Correlation Between YiDong Electronics and Sichuan Hebang
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By analyzing existing cross correlation between YiDong Electronics Technology and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on YiDong Electronics and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Sichuan Hebang.
Diversification Opportunities for YiDong Electronics and Sichuan Hebang
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YiDong and Sichuan is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Sichuan Hebang go up and down completely randomly.
Pair Corralation between YiDong Electronics and Sichuan Hebang
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 3.91 times more return on investment than Sichuan Hebang. However, YiDong Electronics is 3.91 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.12 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.39 per unit of risk. If you would invest 2,199 in YiDong Electronics Technology on October 25, 2024 and sell it today you would earn a total of 281.00 from holding YiDong Electronics Technology or generate 12.78% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| YiDong Electronics |
| Sichuan Hebang Biote |
YiDong Electronics and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Sichuan Hebang
The main advantage of trading using opposite YiDong Electronics and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| YiDong Electronics vs. Kweichow Moutai Co | YiDong Electronics vs. NAURA Technology Group | YiDong Electronics vs. APT Medical | YiDong Electronics vs. BYD Co Ltd |
| Sichuan Hebang vs. YiDong Electronics Technology | Sichuan Hebang vs. Southern PublishingMedia Co | Sichuan Hebang vs. Offcn Education Technology | Sichuan Hebang vs. Shandong Publishing Media |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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