Correlation Between Bitcoin and YiDong Electronics
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By analyzing existing cross correlation between Bitcoin and YiDong Electronics Technology, you can compare the effects of market volatilities on Bitcoin 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 Bitcoin with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and YiDong Electronics.
Diversification Opportunities for Bitcoin and YiDong Electronics
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and YiDong is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and Bitcoin 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 Bitcoin 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 Bitcoin i.e., Bitcoin and YiDong Electronics go up and down completely randomly.
Pair Corralation between Bitcoin and YiDong Electronics
Assuming the 90 days trading horizon Bitcoin is expected to generate 3.86 times less return on investment than YiDong Electronics. But when comparing it to its historical volatility, Bitcoin is 2.83 times less risky than YiDong Electronics. It trades about 0.15 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,040 in YiDong Electronics Technology on October 20, 2024 and sell it today you would earn a total of 536.00 from holding YiDong Electronics Technology or generate 26.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin vs. YiDong Electronics Technology
Performance |
| Timeline |
| Bitcoin |
| YiDong Electronics |
Bitcoin and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and YiDong Electronics
The main advantage of trading using opposite Bitcoin and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin 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 Bitcoin 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. Southchip Semiconductor Technology | YiDong Electronics vs. Ye Chiu Metal | YiDong Electronics vs. Heilongjiang Transport Development | YiDong Electronics vs. Nexchip Semiconductor Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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