Correlation Between China Construction and Yes Optoelectronics
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By analyzing existing cross correlation between China Construction Bank and Yes Optoelectronics Co, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Yes Optoelectronics.
Diversification Opportunities for China Construction and Yes Optoelectronics
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Yes is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and China Construction 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 China Construction Bank 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 China Construction i.e., China Construction and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between China Construction and Yes Optoelectronics
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.27 times more return on investment than Yes Optoelectronics. However, China Construction Bank is 3.66 times less risky than Yes Optoelectronics. It trades about -0.01 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.02 per unit of risk. If you would invest 855.00 in China Construction Bank on October 14, 2024 and sell it today you would lose (10.00) from holding China Construction Bank or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Yes Optoelectronics Co
Performance |
| Timeline |
| China Construction Bank |
| Yes Optoelectronics |
China Construction and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Yes Optoelectronics
The main advantage of trading using opposite China Construction and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Shandong Sinoglory Health | China Construction vs. FSPG Hi Tech Co | China Construction vs. De Rucci Healthy | China Construction vs. Shanghai Shibei Hi Tech |
| Yes Optoelectronics vs. Sihui Fuji Electronics | Yes Optoelectronics vs. Shengda Mining Co | Yes Optoelectronics vs. Hainan Mining Co | Yes Optoelectronics vs. Integrated Electronic Systems |
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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