Correlation Between HUAQIN TECHNOLOGY and Yonyou Auto
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Yonyou Auto Information, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY with a short position of Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Yonyou Auto.
Diversification Opportunities for HUAQIN TECHNOLOGY and Yonyou Auto
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HUAQIN and Yonyou is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Yonyou Auto go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Yonyou Auto
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.16 times more return on investment than Yonyou Auto. However, HUAQIN TECHNOLOGY is 1.16 times more volatile than Yonyou Auto Information. It trades about 0.19 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about 0.11 per unit of risk. If you would invest 5,605 in HUAQIN TECHNOLOGY LTD on September 1, 2024 and sell it today you would earn a total of 650.00 from holding HUAQIN TECHNOLOGY LTD or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Yonyou Auto Information
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Yonyou Auto Information |
HUAQIN TECHNOLOGY and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Yonyou Auto
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY 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.| HUAQIN TECHNOLOGY vs. Industrial and Commercial | HUAQIN TECHNOLOGY vs. Kweichow Moutai Co | HUAQIN TECHNOLOGY vs. Agricultural Bank of | HUAQIN TECHNOLOGY vs. China Mobile Limited |
| Yonyou Auto vs. Ningbo Kangqiang Electronics | Yonyou Auto vs. Wuhan Yangtze Communication | Yonyou Auto vs. CSSC Offshore Marine | Yonyou Auto vs. Zhejiang JIULI Hi tech |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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