Correlation Between Stellar and YiDong Electronics
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By analyzing existing cross correlation between Stellar and YiDong Electronics Technology, you can compare the effects of market volatilities on Stellar 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 Stellar with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar and YiDong Electronics.
Diversification Opportunities for Stellar and YiDong Electronics
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stellar and YiDong is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and Stellar 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 Stellar 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 Stellar i.e., Stellar and YiDong Electronics go up and down completely randomly.
Pair Corralation between Stellar and YiDong Electronics
Assuming the 90 days trading horizon Stellar is expected to under-perform the YiDong Electronics. But the crypto coin apears to be less risky and, when comparing its historical volatility, Stellar is 1.04 times less risky than YiDong Electronics. The crypto coin trades about -0.01 of its potential returns per unit of risk. The YiDong Electronics Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,019 in YiDong Electronics Technology on November 2, 2024 and sell it today you would earn a total of 126.00 from holding YiDong Electronics Technology or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Stellar vs. YiDong Electronics Technology
Performance |
| Timeline |
| Stellar |
| YiDong Electronics |
Stellar and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar and YiDong Electronics
The main advantage of trading using opposite Stellar and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar 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 Stellar 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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