Correlation Between Yantai North and Sanan Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yantai North Andre and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Yantai North and Sanan 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 Yantai North with a short position of Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Sanan Optoelectronics.
Diversification Opportunities for Yantai North and Sanan Optoelectronics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yantai and Sanan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Yantai North i.e., Yantai North and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Yantai North and Sanan Optoelectronics
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 1.69 times more return on investment than Sanan Optoelectronics. However, Yantai North is 1.69 times more volatile than Sanan Optoelectronics Co. It trades about 0.06 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.01 per unit of risk. If you would invest 2,102 in Yantai North Andre on September 14, 2024 and sell it today you would earn a total of 893.00 from holding Yantai North Andre or generate 42.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Sanan Optoelectronics Co
Performance |
| Timeline |
| Yantai North Andre |
| Sanan Optoelectronics |
Yantai North and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Sanan Optoelectronics
The main advantage of trading using opposite Yantai North and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North position performs unexpectedly, Sanan 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.| Yantai North vs. Industrial and Commercial | Yantai North vs. Agricultural Bank of | Yantai North vs. China Construction Bank | Yantai North vs. Bank of China |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |