Correlation Between Yonyou Auto and Zhejiang Juhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yonyou Auto Information and Zhejiang Juhua Co, you can compare the effects of market volatilities on Yonyou Auto and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and Zhejiang Juhua.
Diversification Opportunities for Yonyou Auto and Zhejiang Juhua
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yonyou and Zhejiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Yonyou Auto i.e., Yonyou Auto and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Yonyou Auto and Zhejiang Juhua
Assuming the 90 days trading horizon Yonyou Auto Information is expected to under-perform the Zhejiang Juhua. But the stock apears to be less risky and, when comparing its historical volatility, Yonyou Auto Information is 1.21 times less risky than Zhejiang Juhua. The stock trades about 0.0 of its potential returns per unit of risk. The Zhejiang Juhua Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,205 in Zhejiang Juhua Co on September 15, 2024 and sell it today you would earn a total of 8.00 from holding Zhejiang Juhua Co or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonyou Auto Information vs. Zhejiang Juhua Co
Performance |
| Timeline |
| Yonyou Auto Information |
| Zhejiang Juhua |
Yonyou Auto and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and Zhejiang Juhua
The main advantage of trading using opposite Yonyou Auto and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Yonyou Auto vs. Ming Yang Smart | Yonyou Auto vs. 159681 | Yonyou Auto vs. 159005 | Yonyou Auto vs. Loctek Ergonomic Technology |
| Zhejiang Juhua vs. Zoy Home Furnishing | Zhejiang Juhua vs. Yonyou Auto Information | Zhejiang Juhua vs. Zhangjiagang Elegant Home | Zhejiang Juhua vs. Xiamen Goldenhome Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |