Correlation Between Ye Chiu and AVCON Information
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By analyzing existing cross correlation between Ye Chiu Metal and AVCON Information Tech, you can compare the effects of market volatilities on Ye Chiu and AVCON Information 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 Ye Chiu with a short position of AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and AVCON Information.
Diversification Opportunities for Ye Chiu and AVCON Information
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and AVCON is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Ye Chiu i.e., Ye Chiu and AVCON Information go up and down completely randomly.
Pair Corralation between Ye Chiu and AVCON Information
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the AVCON Information. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.43 times less risky than AVCON Information. The stock trades about -0.02 of its potential returns per unit of risk. The AVCON Information Tech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 399.00 in AVCON Information Tech on October 16, 2024 and sell it today you would lose (34.00) from holding AVCON Information Tech or give up 8.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. AVCON Information Tech
Performance |
| Timeline |
| Ye Chiu Metal |
| AVCON Information Tech |
Ye Chiu and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and AVCON Information
The main advantage of trading using opposite Ye Chiu and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Ye Chiu vs. Long Yuan Construction | Ye Chiu vs. Allied Machinery Co | Ye Chiu vs. Eyebright Medical Technology | Ye Chiu vs. Masterwork Machinery |
| AVCON Information vs. GRINM Semiconductor Materials | AVCON Information vs. Ye Chiu Metal | AVCON Information vs. Semiconductor Manufacturing Intl | AVCON Information vs. Shanghai V Test Semiconductor |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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