Correlation Between YiDong Electronics and Henan Shenhuo
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By analyzing existing cross correlation between YiDong Electronics Technology and Henan Shenhuo Coal, you can compare the effects of market volatilities on YiDong Electronics and Henan Shenhuo 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 YiDong Electronics with a short position of Henan Shenhuo. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Henan Shenhuo.
Diversification Opportunities for YiDong Electronics and Henan Shenhuo
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YiDong and Henan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Henan Shenhuo Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shenhuo Coal and YiDong Electronics 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 YiDong Electronics Technology are associated (or correlated) with Henan Shenhuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shenhuo Coal has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Henan Shenhuo go up and down completely randomly.
Pair Corralation between YiDong Electronics and Henan Shenhuo
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.14 times more return on investment than Henan Shenhuo. However, YiDong Electronics is 1.14 times more volatile than Henan Shenhuo Coal. It trades about 0.06 of its potential returns per unit of risk. Henan Shenhuo Coal is currently generating about -0.12 per unit of risk. If you would invest 2,033 in YiDong Electronics Technology on September 23, 2024 and sell it today you would earn a total of 125.00 from holding YiDong Electronics Technology or generate 6.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
YiDong Electronics Technology vs. Henan Shenhuo Coal
Performance |
Timeline |
YiDong Electronics |
Henan Shenhuo Coal |
YiDong Electronics and Henan Shenhuo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YiDong Electronics and Henan Shenhuo
The main advantage of trading using opposite YiDong Electronics and Henan Shenhuo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Henan Shenhuo 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 Henan Shenhuo will offset losses from the drop in Henan Shenhuo's long position.YiDong Electronics vs. Industrial and Commercial | YiDong Electronics vs. China Construction Bank | YiDong Electronics vs. Agricultural Bank of | YiDong Electronics vs. Bank of China |
Henan Shenhuo vs. YiDong Electronics Technology | Henan Shenhuo vs. Success Electronics | Henan Shenhuo vs. Sunwoda Electronic | Henan Shenhuo vs. Kuang Chi Technologies |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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