Correlation Between Shandong Ruifeng and Yes Optoelectronics
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and Yes Optoelectronics Co, you can compare the effects of market volatilities on Shandong Ruifeng and Yes Optoelectronics 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 Shandong Ruifeng with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and Yes Optoelectronics.
Diversification Opportunities for Shandong Ruifeng and Yes Optoelectronics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Yes is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Shandong Ruifeng 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 Shandong Ruifeng Chemical are associated (or correlated) with Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of Shandong Ruifeng i.e., Shandong Ruifeng and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and Yes Optoelectronics
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to under-perform the Yes Optoelectronics. In addition to that, Shandong Ruifeng is 1.31 times more volatile than Yes Optoelectronics Co. It trades about -0.25 of its total potential returns per unit of risk. Yes Optoelectronics Co is currently generating about 0.07 per unit of volatility. If you would invest 2,500 in Yes Optoelectronics Co on September 23, 2024 and sell it today you would earn a total of 77.00 from holding Yes Optoelectronics Co or generate 3.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Ruifeng Chemical vs. Yes Optoelectronics Co
Performance |
Timeline |
Shandong Ruifeng Chemical |
Yes Optoelectronics |
Shandong Ruifeng and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Ruifeng and Yes Optoelectronics
The main advantage of trading using opposite Shandong Ruifeng and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.Shandong Ruifeng vs. Zijin Mining Group | Shandong Ruifeng vs. Wanhua Chemical Group | Shandong Ruifeng vs. Baoshan Iron Steel | Shandong Ruifeng vs. Shandong Gold Mining |
Yes Optoelectronics vs. Industrial and Commercial | Yes Optoelectronics vs. Kweichow Moutai Co | Yes Optoelectronics vs. Agricultural Bank of | Yes Optoelectronics vs. China Mobile Limited |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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