Correlation Between Feature Integration and Yuan High
Can any of the company-specific risk be diversified away by investing in both Feature Integration and Yuan High 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 Feature Integration and Yuan High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feature Integration Technology and Yuan High Tech Development, you can compare the effects of market volatilities on Feature Integration and Yuan High 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 Feature Integration with a short position of Yuan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feature Integration and Yuan High.
Diversification Opportunities for Feature Integration and Yuan High
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Feature and Yuan is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Feature Integration Technology and Yuan High Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan High Tech and Feature Integration 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 Feature Integration Technology are associated (or correlated) with Yuan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan High Tech has no effect on the direction of Feature Integration i.e., Feature Integration and Yuan High go up and down completely randomly.
Pair Corralation between Feature Integration and Yuan High
Assuming the 90 days trading horizon Feature Integration Technology is expected to generate 0.35 times more return on investment than Yuan High. However, Feature Integration Technology is 2.86 times less risky than Yuan High. It trades about 0.1 of its potential returns per unit of risk. Yuan High Tech Development is currently generating about -0.07 per unit of risk. If you would invest 6,520 in Feature Integration Technology on November 2, 2024 and sell it today you would earn a total of 160.00 from holding Feature Integration Technology or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feature Integration Technology vs. Yuan High Tech Development
Performance |
| Timeline |
| Feature Integration |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yuan High Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Feature Integration and Yuan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feature Integration and Yuan High
The main advantage of trading using opposite Feature Integration and Yuan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feature Integration position performs unexpectedly, Yuan High 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 Yuan High will offset losses from the drop in Yuan High's long position.The idea behind Feature Integration Technology and Yuan High Tech Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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