Correlation Between New Advanced and YoungQin International
Can any of the company-specific risk be diversified away by investing in both New Advanced and YoungQin International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining New Advanced and YoungQin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Advanced Electronics and YoungQin International Co, you can compare the effects of market volatilities on New Advanced and YoungQin International 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 New Advanced with a short position of YoungQin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Advanced and YoungQin International.
Diversification Opportunities for New Advanced and YoungQin International
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between New and YoungQin is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding New Advanced Electronics and YoungQin International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YoungQin International and New Advanced 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 New Advanced Electronics are associated (or correlated) with YoungQin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YoungQin International has no effect on the direction of New Advanced i.e., New Advanced and YoungQin International go up and down completely randomly.
Pair Corralation between New Advanced and YoungQin International
Assuming the 90 days trading horizon New Advanced Electronics is expected to under-perform the YoungQin International. In addition to that, New Advanced is 2.41 times more volatile than YoungQin International Co. It trades about -0.22 of its total potential returns per unit of risk. YoungQin International Co is currently generating about 0.1 per unit of volatility. If you would invest 9,770 in YoungQin International Co on August 28, 2024 and sell it today you would earn a total of 190.00 from holding YoungQin International Co or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
New Advanced Electronics vs. YoungQin International Co
Performance |
| Timeline |
| New Advanced Electronics |
| YoungQin International |
New Advanced and YoungQin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Advanced and YoungQin International
The main advantage of trading using opposite New Advanced and YoungQin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Advanced position performs unexpectedly, YoungQin International 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 YoungQin International will offset losses from the drop in YoungQin International's long position.| New Advanced vs. Advantech Co | New Advanced vs. IEI Integration Corp | New Advanced vs. Flytech Technology Co | New Advanced vs. ADLINK 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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