Correlation Between Gem Year and Yonyou Auto
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By analyzing existing cross correlation between Gem Year Industrial Co and Yonyou Auto Information, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Yonyou Auto.
Diversification Opportunities for Gem Year and Yonyou Auto
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gem and Yonyou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Yonyou Auto go up and down completely randomly.
Pair Corralation between Gem Year and Yonyou Auto
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.57 times more return on investment than Yonyou Auto. However, Gem Year is 1.57 times more volatile than Yonyou Auto Information. It trades about 0.26 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about -0.02 per unit of risk. If you would invest 355.00 in Gem Year Industrial Co on August 25, 2024 and sell it today you would earn a total of 85.00 from holding Gem Year Industrial Co or generate 23.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Yonyou Auto Information
Performance |
| Timeline |
| Gem Year Industrial |
| Yonyou Auto Information |
Gem Year and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Yonyou Auto
The main advantage of trading using opposite Gem Year and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Tieling Newcity Investment | Gem Year vs. Hubei Geoway Investment | Gem Year vs. Xiandai Investment Co | Gem Year vs. Zoje Resources Investment |
| Yonyou Auto vs. Innovative Medical Management | Yonyou Auto vs. Gem Year Industrial Co | Yonyou Auto vs. Bomesc Offshore Engineering | Yonyou Auto vs. Chengdu Spaceon Electronics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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