Correlation Between YiDong Electronics and Yifeng Pharmacy
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By analyzing existing cross correlation between YiDong Electronics Technology and Yifeng Pharmacy, you can compare the effects of market volatilities on YiDong Electronics and Yifeng Pharmacy 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 Yifeng Pharmacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Yifeng Pharmacy.
Diversification Opportunities for YiDong Electronics and Yifeng Pharmacy
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YiDong and Yifeng is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Yifeng Pharmacy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yifeng Pharmacy 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 Yifeng Pharmacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yifeng Pharmacy has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Yifeng Pharmacy go up and down completely randomly.
Pair Corralation between YiDong Electronics and Yifeng Pharmacy
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 0.96 times more return on investment than Yifeng Pharmacy. However, YiDong Electronics Technology is 1.04 times less risky than Yifeng Pharmacy. It trades about 0.1 of its potential returns per unit of risk. Yifeng Pharmacy is currently generating about 0.06 per unit of risk. If you would invest 1,923 in YiDong Electronics Technology on September 13, 2024 and sell it today you would earn a total of 203.00 from holding YiDong Electronics Technology or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Yifeng Pharmacy
Performance |
| Timeline |
| YiDong Electronics |
| Yifeng Pharmacy |
YiDong Electronics and Yifeng Pharmacy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Yifeng Pharmacy
The main advantage of trading using opposite YiDong Electronics and Yifeng Pharmacy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Yifeng Pharmacy 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 Yifeng Pharmacy will offset losses from the drop in Yifeng Pharmacy's long position.| YiDong Electronics vs. Industrial and Commercial | YiDong Electronics vs. Agricultural Bank of | YiDong Electronics vs. China Construction Bank | YiDong Electronics vs. Bank of China |
| Yifeng Pharmacy vs. China Construction Bank | Yifeng Pharmacy vs. Ping An Insurance | Yifeng Pharmacy vs. LianChuang Electronic Technology | Yifeng Pharmacy 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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