Correlation Between Yantai North and Fujian Newland
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By analyzing existing cross correlation between Yantai North Andre and Fujian Newland Computer, you can compare the effects of market volatilities on Yantai North and Fujian Newland 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 Yantai North with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Fujian Newland.
Diversification Opportunities for Yantai North and Fujian Newland
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yantai and Fujian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Yantai North 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 Yantai North Andre are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Yantai North i.e., Yantai North and Fujian Newland go up and down completely randomly.
Pair Corralation between Yantai North and Fujian Newland
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 0.8 times more return on investment than Fujian Newland. However, Yantai North Andre is 1.25 times less risky than Fujian Newland. It trades about 0.19 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.12 per unit of risk. If you would invest 2,482 in Yantai North Andre on August 28, 2024 and sell it today you would earn a total of 287.00 from holding Yantai North Andre or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Fujian Newland Computer
Performance |
| Timeline |
| Yantai North Andre |
| Fujian Newland Computer |
Yantai North and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Fujian Newland
The main advantage of trading using opposite Yantai North and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Yantai North vs. Industrial and Commercial | Yantai North vs. Kweichow Moutai Co | Yantai North vs. Agricultural Bank of | Yantai North vs. China Mobile Limited |
| Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. Industrial and Commercial | Fujian Newland vs. Bank of China | Fujian Newland vs. PetroChina Co Ltd |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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