Correlation Between YiDong Electronics and Nantong Haixing
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By analyzing existing cross correlation between YiDong Electronics Technology and Nantong Haixing Electronics, you can compare the effects of market volatilities on YiDong Electronics and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Nantong Haixing.
Diversification Opportunities for YiDong Electronics and Nantong Haixing
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between YiDong and Nantong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Nantong Haixing go up and down completely randomly.
Pair Corralation between YiDong Electronics and Nantong Haixing
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 2.19 times more return on investment than Nantong Haixing. However, YiDong Electronics is 2.19 times more volatile than Nantong Haixing Electronics. It trades about 0.13 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.23 per unit of risk. If you would invest 2,126 in YiDong Electronics Technology on October 12, 2024 and sell it today you would earn a total of 213.00 from holding YiDong Electronics Technology or generate 10.02% 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. Nantong Haixing Electronics
Performance |
| Timeline |
| YiDong Electronics |
| Nantong Haixing Elec |
YiDong Electronics and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Nantong Haixing
The main advantage of trading using opposite YiDong Electronics and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| YiDong Electronics vs. Guangzhou Ruoyuchen Information | YiDong Electronics vs. Emdoor Information Co | YiDong Electronics vs. Beijing Sanyuan Foods | YiDong Electronics vs. Qingdao Foods Co |
| Nantong Haixing vs. Tianjin Hi Tech Development | Nantong Haixing vs. Allwin Telecommunication Co | Nantong Haixing vs. Sichuan Teway Food | Nantong Haixing vs. Jiangxi Hengda Hi 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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