Correlation Between Yonyou Auto and Hubei Huaqiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yonyou Auto Information and Hubei Huaqiang High Tech, you can compare the effects of market volatilities on Yonyou Auto and Hubei Huaqiang 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 Hubei Huaqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and Hubei Huaqiang.
Diversification Opportunities for Yonyou Auto and Hubei Huaqiang
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yonyou and Hubei is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information and Hubei Huaqiang High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Huaqiang High 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 Hubei Huaqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Huaqiang High has no effect on the direction of Yonyou Auto i.e., Yonyou Auto and Hubei Huaqiang go up and down completely randomly.
Pair Corralation between Yonyou Auto and Hubei Huaqiang
Assuming the 90 days trading horizon Yonyou Auto Information is expected to generate 1.03 times more return on investment than Hubei Huaqiang. However, Yonyou Auto is 1.03 times more volatile than Hubei Huaqiang High Tech. It trades about 0.17 of its potential returns per unit of risk. Hubei Huaqiang High Tech is currently generating about 0.09 per unit of risk. If you would invest 1,833 in Yonyou Auto Information on September 3, 2024 and sell it today you would earn a total of 145.00 from holding Yonyou Auto Information or generate 7.91% 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. Hubei Huaqiang High Tech
Performance |
| Timeline |
| Yonyou Auto Information |
| Hubei Huaqiang High |
Yonyou Auto and Hubei Huaqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and Hubei Huaqiang
The main advantage of trading using opposite Yonyou Auto and Hubei Huaqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto position performs unexpectedly, Hubei Huaqiang 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 Hubei Huaqiang will offset losses from the drop in Hubei Huaqiang's long position.| Yonyou Auto vs. Agricultural Bank of | Yonyou Auto vs. China Construction Bank | Yonyou Auto vs. Postal Savings Bank | Yonyou Auto vs. Bank of Communications |
| Hubei Huaqiang vs. Xinjiang Communications Construction | Hubei Huaqiang vs. Zhongtong Guomai Communication | Hubei Huaqiang vs. Zhejiang Publishing Media | Hubei Huaqiang vs. Northern United Publishing |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |