Correlation Between Western Mining and Yonyou Auto
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By analyzing existing cross correlation between Western Mining Co and Yonyou Auto Information, you can compare the effects of market volatilities on Western Mining 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 Western Mining with a short position of Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Yonyou Auto.
Diversification Opportunities for Western Mining and Yonyou Auto
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Western and Yonyou is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining 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 Western 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 Western Mining 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 Western Mining i.e., Western Mining and Yonyou Auto go up and down completely randomly.
Pair Corralation between Western Mining and Yonyou Auto
Assuming the 90 days trading horizon Western Mining is expected to generate 1.11 times less return on investment than Yonyou Auto. But when comparing it to its historical volatility, Western Mining Co is 1.36 times less risky than Yonyou Auto. It trades about 0.27 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,609 in Yonyou Auto Information on November 6, 2024 and sell it today you would earn a total of 106.00 from holding Yonyou Auto Information or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Mining Co vs. Yonyou Auto Information
Performance |
| Timeline |
| Western Mining |
| Yonyou Auto Information |
Western Mining and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Mining and Yonyou Auto
The main advantage of trading using opposite Western Mining and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining 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.| Western Mining vs. Semiconductor Manufacturing Intl | Western Mining vs. COL Digital Publishing | Western Mining vs. Jiangsu Phoenix Publishing | Western Mining vs. GRINM Semiconductor Materials |
| Yonyou Auto vs. Kangping Technology Co | Yonyou Auto vs. Olympic Circuit Technology | Yonyou Auto vs. Sharetronic Data Technology | Yonyou Auto vs. Eyebright Medical Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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