Correlation Between Senci Electric and YiDong Electronics
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By analyzing existing cross correlation between Senci Electric Machinery and YiDong Electronics Technology, you can compare the effects of market volatilities on Senci Electric and YiDong Electronics 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 Senci Electric with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and YiDong Electronics.
Diversification Opportunities for Senci Electric and YiDong Electronics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Senci and YiDong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and Senci Electric 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 Senci Electric Machinery are associated (or correlated) with YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of Senci Electric i.e., Senci Electric and YiDong Electronics go up and down completely randomly.
Pair Corralation between Senci Electric and YiDong Electronics
Assuming the 90 days trading horizon Senci Electric is expected to generate 1.89 times less return on investment than YiDong Electronics. But when comparing it to its historical volatility, Senci Electric Machinery is 1.71 times less risky than YiDong Electronics. It trades about 0.16 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,060 in YiDong Electronics Technology on October 24, 2024 and sell it today you would earn a total of 432.00 from holding YiDong Electronics Technology or generate 20.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. YiDong Electronics Technology
Performance |
| Timeline |
| Senci Electric Machinery |
| YiDong Electronics |
Senci Electric and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and YiDong Electronics
The main advantage of trading using opposite Senci Electric and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| Senci Electric vs. Industrial and Commercial | Senci Electric vs. Agricultural Bank of | Senci Electric vs. China Construction Bank | Senci Electric vs. Bank of China |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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