Correlation Between Yonyou Auto and Shaanxi Construction
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By analyzing existing cross correlation between Yonyou Auto Information and Shaanxi Construction Machinery, you can compare the effects of market volatilities on Yonyou Auto and Shaanxi Construction 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 Shaanxi Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and Shaanxi Construction.
Diversification Opportunities for Yonyou Auto and Shaanxi Construction
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yonyou and Shaanxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information and Shaanxi Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Construction 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 Shaanxi Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Construction has no effect on the direction of Yonyou Auto i.e., Yonyou Auto and Shaanxi Construction go up and down completely randomly.
Pair Corralation between Yonyou Auto and Shaanxi Construction
Assuming the 90 days trading horizon Yonyou Auto Information is expected to generate about the same return on investment as Shaanxi Construction Machinery. But, Yonyou Auto Information is 1.19 times less risky than Shaanxi Construction. It trades about -0.03 of its potential returns per unit of risk. Shaanxi Construction Machinery is currently generating about -0.02 per unit of risk. If you would invest 588.00 in Shaanxi Construction Machinery on August 28, 2024 and sell it today you would lose (250.00) from holding Shaanxi Construction Machinery or give up 42.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 82.46% |
| Values | Daily Returns |
Yonyou Auto Information vs. Shaanxi Construction Machinery
Performance |
| Timeline |
| Yonyou Auto Information |
| Shaanxi Construction |
Yonyou Auto and Shaanxi Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and Shaanxi Construction
The main advantage of trading using opposite Yonyou Auto and Shaanxi Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto position performs unexpectedly, Shaanxi Construction 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 Shaanxi Construction will offset losses from the drop in Shaanxi Construction's long position.| Yonyou Auto vs. Agricultural Bank of | Yonyou Auto vs. Industrial and Commercial | Yonyou Auto vs. Bank of China | Yonyou Auto vs. PetroChina Co Ltd |
| Shaanxi Construction vs. Cambricon Technologies Corp | Shaanxi Construction vs. Loongson Technology Corp | Shaanxi Construction vs. Chongqing Road Bridge | Shaanxi Construction vs. Shenzhen Fortune Trend |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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