Correlation Between YiDong Electronics and Shenzhen RoadRover
Specify exactly 2 symbols:
By analyzing existing cross correlation between YiDong Electronics Technology and Shenzhen RoadRover Technology, you can compare the effects of market volatilities on YiDong Electronics and Shenzhen RoadRover 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 Shenzhen RoadRover. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Shenzhen RoadRover.
Diversification Opportunities for YiDong Electronics and Shenzhen RoadRover
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YiDong and Shenzhen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Shenzhen RoadRover Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen RoadRover 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 Shenzhen RoadRover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen RoadRover has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Shenzhen RoadRover go up and down completely randomly.
Pair Corralation between YiDong Electronics and Shenzhen RoadRover
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 0.92 times more return on investment than Shenzhen RoadRover. However, YiDong Electronics Technology is 1.08 times less risky than Shenzhen RoadRover. It trades about 0.11 of its potential returns per unit of risk. Shenzhen RoadRover Technology is currently generating about -0.21 per unit of risk. If you would invest 1,950 in YiDong Electronics Technology on September 25, 2024 and sell it today you would earn a total of 110.00 from holding YiDong Electronics Technology or generate 5.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
YiDong Electronics Technology vs. Shenzhen RoadRover Technology
Performance |
Timeline |
YiDong Electronics |
Shenzhen RoadRover |
YiDong Electronics and Shenzhen RoadRover Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YiDong Electronics and Shenzhen RoadRover
The main advantage of trading using opposite YiDong Electronics and Shenzhen RoadRover positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Shenzhen RoadRover 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 Shenzhen RoadRover will offset losses from the drop in Shenzhen RoadRover'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 |
Shenzhen RoadRover vs. Zhejiang Construction Investment | Shenzhen RoadRover vs. Tieling Newcity Investment | Shenzhen RoadRover vs. Industrial Bank Co | Shenzhen RoadRover vs. Chengdu Xingrong Investment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |