Correlation Between Nantong Haixing and YiDong Electronics
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By analyzing existing cross correlation between Nantong Haixing Electronics and YiDong Electronics Technology, you can compare the effects of market volatilities on Nantong Haixing 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 Nantong Haixing with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and YiDong Electronics.
Diversification Opportunities for Nantong Haixing and YiDong Electronics
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nantong and YiDong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and Nantong Haixing 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 Nantong Haixing Electronics 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 Nantong Haixing i.e., Nantong Haixing and YiDong Electronics go up and down completely randomly.
Pair Corralation between Nantong Haixing and YiDong Electronics
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the YiDong Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Nantong Haixing Electronics is 2.19 times less risky than YiDong Electronics. The stock trades about -0.23 of its potential returns per unit of risk. The YiDong Electronics Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,126 in YiDong Electronics Technology on October 12, 2024 and sell it today you would earn a total of 213.00 from holding YiDong Electronics Technology or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. YiDong Electronics Technology
Performance |
| Timeline |
| Nantong Haixing Elec |
| YiDong Electronics |
Nantong Haixing and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and YiDong Electronics
The main advantage of trading using opposite Nantong Haixing and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing 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.| Nantong Haixing vs. Tianjin Hi Tech Development | Nantong Haixing vs. Allwin Telecommunication Co | Nantong Haixing vs. Sichuan Teway Food | Nantong Haixing vs. Jiangxi Hengda Hi Tech |
| YiDong Electronics vs. Guangzhou Ruoyuchen Information | YiDong Electronics vs. Emdoor Information Co | YiDong Electronics vs. Beijing Sanyuan Foods | YiDong Electronics vs. Qingdao Foods Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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