Correlation Between Healthcare and Yes Optoelectronics
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By analyzing existing cross correlation between Healthcare Co and Yes Optoelectronics Co, you can compare the effects of market volatilities on Healthcare 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 Healthcare with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Yes Optoelectronics.
Diversification Opportunities for Healthcare and Yes Optoelectronics
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Healthcare and Yes is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Healthcare 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 Healthcare Co 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 Healthcare i.e., Healthcare and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Healthcare and Yes Optoelectronics
Assuming the 90 days trading horizon Healthcare Co is expected to generate 0.48 times more return on investment than Yes Optoelectronics. However, Healthcare Co is 2.09 times less risky than Yes Optoelectronics. It trades about -0.38 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.21 per unit of risk. If you would invest 773.00 in Healthcare Co on October 15, 2024 and sell it today you would lose (141.00) from holding Healthcare Co or give up 18.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Healthcare |
| Yes Optoelectronics |
Healthcare and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Yes Optoelectronics
The main advantage of trading using opposite Healthcare and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare 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.| Healthcare vs. Chongqing Brewery Co | Healthcare vs. Jinhui Liquor Co | Healthcare vs. Holitech Technology Co | Healthcare vs. Eyebright Medical Technology |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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