Correlation Between Yantai North and Changshu Ruite
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By analyzing existing cross correlation between Yantai North Andre and Changshu Ruite Electric, you can compare the effects of market volatilities on Yantai North and Changshu Ruite 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 Changshu Ruite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Changshu Ruite.
Diversification Opportunities for Yantai North and Changshu Ruite
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yantai and Changshu is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and Changshu Ruite Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Ruite Electric 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 Changshu Ruite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Ruite Electric has no effect on the direction of Yantai North i.e., Yantai North and Changshu Ruite go up and down completely randomly.
Pair Corralation between Yantai North and Changshu Ruite
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 1.02 times more return on investment than Changshu Ruite. However, Yantai North is 1.02 times more volatile than Changshu Ruite Electric. It trades about 0.29 of its potential returns per unit of risk. Changshu Ruite Electric is currently generating about 0.06 per unit of risk. If you would invest 2,688 in Yantai North Andre on November 7, 2024 and sell it today you would earn a total of 265.00 from holding Yantai North Andre or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Changshu Ruite Electric
Performance |
| Timeline |
| Yantai North Andre |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Changshu Ruite Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yantai North and Changshu Ruite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Changshu Ruite
The main advantage of trading using opposite Yantai North and Changshu Ruite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North position performs unexpectedly, Changshu Ruite 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 Changshu Ruite will offset losses from the drop in Changshu Ruite's long position.| Yantai North vs. Shanghai SK Automation | Yantai North vs. ShenZhen YUTO Packaging | Yantai North vs. Lao Feng Xiang |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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