Correlation Between Chengtun Mining and Yes Optoelectronics
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By analyzing existing cross correlation between Chengtun Mining Group and Yes Optoelectronics Co, you can compare the effects of market volatilities on Chengtun Mining and Yes Optoelectronics 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 Chengtun Mining with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Yes Optoelectronics.
Diversification Opportunities for Chengtun Mining and Yes Optoelectronics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengtun and Yes is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Chengtun Mining 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 Chengtun Mining Group are associated (or correlated) with Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Chengtun Mining and Yes Optoelectronics
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.55 times more return on investment than Yes Optoelectronics. However, Chengtun Mining Group is 1.8 times less risky than Yes Optoelectronics. It trades about 0.23 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.28 per unit of risk. If you would invest 472.00 in Chengtun Mining Group on November 7, 2024 and sell it today you would earn a total of 34.00 from holding Chengtun Mining Group or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Chengtun Mining Group vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Chengtun Mining Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yes Optoelectronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chengtun Mining and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Yes Optoelectronics
The main advantage of trading using opposite Chengtun Mining and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.The idea behind Chengtun Mining Group and Yes Optoelectronics Co 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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