Correlation Between YiDong Electronics and Hygon Information
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By analyzing existing cross correlation between YiDong Electronics Technology and Hygon Information Technology, you can compare the effects of market volatilities on YiDong Electronics and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Hygon Information.
Diversification Opportunities for YiDong Electronics and Hygon Information
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YiDong and Hygon is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Hygon Information go up and down completely randomly.
Pair Corralation between YiDong Electronics and Hygon Information
Assuming the 90 days trading horizon YiDong Electronics is expected to generate 1.29 times less return on investment than Hygon Information. But when comparing it to its historical volatility, YiDong Electronics Technology is 1.19 times less risky than Hygon Information. It trades about 0.08 of its potential returns per unit of risk. Hygon Information Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 12,420 in Hygon Information Technology on October 14, 2024 and sell it today you would earn a total of 2,250 from holding Hygon Information Technology or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Hygon Information Technology
Performance |
| Timeline |
| YiDong Electronics |
| Hygon Information |
YiDong Electronics and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Hygon Information
The main advantage of trading using opposite YiDong Electronics and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| YiDong Electronics vs. GuoChuang Software Co | YiDong Electronics vs. Zhongshan Public Utilities | YiDong Electronics vs. Unisplendour Corp | YiDong Electronics vs. Xiamen Bank Co |
| Hygon Information vs. Epoxy Base Electronic | Hygon Information vs. YiDong Electronics Technology | Hygon Information vs. Shanghai Yaoji Playing | Hygon Information vs. ButOne Information Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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