Correlation Between Guangdong Ellington and YiDong Electronics
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By analyzing existing cross correlation between Guangdong Ellington Electronics and YiDong Electronics Technology, you can compare the effects of market volatilities on Guangdong Ellington 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 Guangdong Ellington with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Ellington and YiDong Electronics.
Diversification Opportunities for Guangdong Ellington and YiDong Electronics
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and YiDong is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Ellington Electronic and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and Guangdong Ellington 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 Guangdong Ellington 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 Guangdong Ellington i.e., Guangdong Ellington and YiDong Electronics go up and down completely randomly.
Pair Corralation between Guangdong Ellington and YiDong Electronics
Assuming the 90 days trading horizon Guangdong Ellington Electronics is expected to generate 0.44 times more return on investment than YiDong Electronics. However, Guangdong Ellington Electronics is 2.25 times less risky than YiDong Electronics. It trades about 0.29 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about -0.01 per unit of risk. If you would invest 887.00 in Guangdong Ellington Electronics on November 6, 2024 and sell it today you would earn a total of 129.00 from holding Guangdong Ellington Electronics or generate 14.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Ellington Electronic vs. YiDong Electronics Technology
Performance |
| Timeline |
| Guangdong Ellington |
| YiDong Electronics |
Guangdong Ellington and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Ellington and YiDong Electronics
The main advantage of trading using opposite Guangdong Ellington and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Ellington 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.| Guangdong Ellington vs. Beijing Enlight Media | Guangdong Ellington vs. Omnijoi Media Corp | Guangdong Ellington vs. Guangdong Jinma Entertainment | Guangdong Ellington vs. Bohai Leasing Co |
| YiDong Electronics vs. Senci Electric Machinery | YiDong Electronics vs. Hainan Haiqi Transportation | YiDong Electronics vs. Lutian Machinery Co | YiDong Electronics vs. Hangzhou Zhongya Machinery |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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