Correlation Between China Asset and YiDong Electronics
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By analyzing existing cross correlation between China Asset Management and YiDong Electronics Technology, you can compare the effects of market volatilities on China Asset and YiDong Electronics 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 China Asset with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and YiDong Electronics.
Diversification Opportunities for China Asset and YiDong Electronics
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and YiDong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and China Asset 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 China Asset Management are associated (or correlated) with YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of China Asset i.e., China Asset and YiDong Electronics go up and down completely randomly.
Pair Corralation between China Asset and YiDong Electronics
Assuming the 90 days trading horizon China Asset is expected to generate 1.29 times less return on investment than YiDong Electronics. But when comparing it to its historical volatility, China Asset Management is 5.92 times less risky than YiDong Electronics. It trades about 0.57 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,199 in YiDong Electronics Technology on October 25, 2024 and sell it today you would earn a total of 281.00 from holding YiDong Electronics Technology or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. YiDong Electronics Technology
Performance |
| Timeline |
| China Asset Management |
| YiDong Electronics |
China Asset and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and YiDong Electronics
The main advantage of trading using opposite China Asset and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| YiDong Electronics vs. Kweichow Moutai Co | YiDong Electronics vs. NAURA Technology Group | YiDong Electronics vs. APT Medical | YiDong Electronics vs. BYD Co Ltd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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