Correlation Between Wintao Communications and Yonyou Auto
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By analyzing existing cross correlation between Wintao Communications Co and Yonyou Auto Information, you can compare the effects of market volatilities on Wintao Communications and Yonyou Auto 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 Wintao Communications with a short position of Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Yonyou Auto.
Diversification Opportunities for Wintao Communications and Yonyou Auto
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wintao and Yonyou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Yonyou Auto Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonyou Auto Information and Wintao Communications 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 Wintao Communications Co are associated (or correlated) with Yonyou Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonyou Auto Information has no effect on the direction of Wintao Communications i.e., Wintao Communications and Yonyou Auto go up and down completely randomly.
Pair Corralation between Wintao Communications and Yonyou Auto
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.47 times more return on investment than Yonyou Auto. However, Wintao Communications is 1.47 times more volatile than Yonyou Auto Information. It trades about 0.01 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about -0.03 per unit of risk. If you would invest 2,778 in Wintao Communications Co on October 28, 2024 and sell it today you would lose (515.00) from holding Wintao Communications Co or give up 18.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 86.75% |
| Values | Daily Returns |
Wintao Communications Co vs. Yonyou Auto Information
Performance |
| Timeline |
| Wintao Communications |
| Yonyou Auto Information |
Wintao Communications and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Yonyou Auto
The main advantage of trading using opposite Wintao Communications and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Yonyou Auto 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 Yonyou Auto will offset losses from the drop in Yonyou Auto's long position.| Wintao Communications vs. Qingdao Foods Co | Wintao Communications vs. Ligao Foods CoLtd | Wintao Communications vs. Anji Foodstuff Co | Wintao Communications vs. Markor International Home |
| Yonyou Auto vs. Hainan Mining Co | Yonyou Auto vs. Xinjiang Baodi Mining | Yonyou Auto vs. Sublime China Information | Yonyou Auto vs. Western Mining 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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