Correlation Between Yonyou Auto and Invengo Information
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By analyzing existing cross correlation between Yonyou Auto Information and Invengo Information Technology, you can compare the effects of market volatilities on Yonyou Auto and Invengo Information 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 Yonyou Auto with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and Invengo Information.
Diversification Opportunities for Yonyou Auto and Invengo Information
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yonyou and Invengo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and Yonyou Auto 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 Yonyou Auto Information are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Yonyou Auto i.e., Yonyou Auto and Invengo Information go up and down completely randomly.
Pair Corralation between Yonyou Auto and Invengo Information
Assuming the 90 days trading horizon Yonyou Auto Information is expected to generate 1.46 times more return on investment than Invengo Information. However, Yonyou Auto is 1.46 times more volatile than Invengo Information Technology. It trades about 0.32 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.38 per unit of risk. If you would invest 1,715 in Yonyou Auto Information on November 27, 2024 and sell it today you would earn a total of 233.00 from holding Yonyou Auto Information or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonyou Auto Information vs. Invengo Information Technology
Performance |
| Timeline |
| Yonyou Auto Information |
| Invengo Information |
Yonyou Auto and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and Invengo Information
The main advantage of trading using opposite Yonyou Auto and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Yonyou Auto vs. Holitech Technology Co | Yonyou Auto vs. Gome Telecom Equipment | Yonyou Auto vs. Cultural Investment Holdings | Yonyou Auto vs. Danhua Chemical Technology |
| Invengo Information vs. Metro Investment Development | Invengo Information vs. Tieling Newcity Investment | Invengo Information vs. Jiajia Food Group | Invengo Information vs. Henan Shuanghui Investment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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