Correlation Between Datang HuaYin and Yonyou Auto
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By analyzing existing cross correlation between Datang HuaYin Electric and Yonyou Auto Information, you can compare the effects of market volatilities on Datang HuaYin 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 Datang HuaYin with a short position of Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and Yonyou Auto.
Diversification Opportunities for Datang HuaYin and Yonyou Auto
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Datang and Yonyou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric 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 Datang HuaYin 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 Datang HuaYin Electric 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 Datang HuaYin i.e., Datang HuaYin and Yonyou Auto go up and down completely randomly.
Pair Corralation between Datang HuaYin and Yonyou Auto
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to generate 0.94 times more return on investment than Yonyou Auto. However, Datang HuaYin Electric is 1.06 times less risky than Yonyou Auto. 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 445.00 in Datang HuaYin Electric on August 28, 2024 and sell it today you would lose (110.00) from holding Datang HuaYin Electric or give up 24.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 78.83% |
| Values | Daily Returns |
Datang HuaYin Electric vs. Yonyou Auto Information
Performance |
| Timeline |
| Datang HuaYin Electric |
| Yonyou Auto Information |
Datang HuaYin and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang HuaYin and Yonyou Auto
The main advantage of trading using opposite Datang HuaYin and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin 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.| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
| Yonyou Auto vs. Agricultural Bank of | Yonyou Auto vs. Industrial and Commercial | Yonyou Auto vs. Bank of China | Yonyou Auto vs. PetroChina 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 CEOs Directory module to screen CEOs from public companies around the world.
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