Correlation Between Astar and YiDong Electronics
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By analyzing existing cross correlation between Astar and YiDong Electronics Technology, you can compare the effects of market volatilities on Astar and YiDong Electronics 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 Astar with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and YiDong Electronics.
Diversification Opportunities for Astar and YiDong Electronics
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astar and YiDong is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Astar and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and Astar 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 Astar are associated (or correlated) with YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of Astar i.e., Astar and YiDong Electronics go up and down completely randomly.
Pair Corralation between Astar and YiDong Electronics
Assuming the 90 days trading horizon Astar is expected to under-perform the YiDong Electronics. In addition to that, Astar is 1.09 times more volatile than YiDong Electronics Technology. It trades about 0.0 of its total potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.08 per unit of volatility. If you would invest 1,679 in YiDong Electronics Technology on November 2, 2024 and sell it today you would earn a total of 466.00 from holding YiDong Electronics Technology or generate 27.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.59% |
| Values | Daily Returns |
Astar vs. YiDong Electronics Technology
Performance |
| Timeline |
| Astar |
| YiDong Electronics |
Astar and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and YiDong Electronics
The main advantage of trading using opposite Astar and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.The idea behind Astar and YiDong Electronics Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| YiDong Electronics vs. Jiangnan Mould Plastic | YiDong Electronics vs. Jilin OLED Material | YiDong Electronics vs. Suzhou Xingye Material | YiDong Electronics vs. Fuda Alloy Materials |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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