Correlation Between YiDong Electronics and Lecron Energy
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By analyzing existing cross correlation between YiDong Electronics Technology and Lecron Energy Saving, you can compare the effects of market volatilities on YiDong Electronics and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Lecron Energy.
Diversification Opportunities for YiDong Electronics and Lecron Energy
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between YiDong and Lecron is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Lecron Energy go up and down completely randomly.
Pair Corralation between YiDong Electronics and Lecron Energy
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.54 times more return on investment than Lecron Energy. However, YiDong Electronics is 1.54 times more volatile than Lecron Energy Saving. It trades about 0.14 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.5 per unit of risk. If you would invest 2,124 in YiDong Electronics Technology on October 10, 2024 and sell it today you would earn a total of 231.00 from holding YiDong Electronics Technology or generate 10.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
YiDong Electronics Technology vs. Lecron Energy Saving
Performance |
Timeline |
YiDong Electronics |
Lecron Energy Saving |
YiDong Electronics and Lecron Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YiDong Electronics and Lecron Energy
The main advantage of trading using opposite YiDong Electronics and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.YiDong Electronics vs. Biwin Storage Technology | YiDong Electronics vs. PetroChina Co Ltd | YiDong Electronics vs. Industrial and Commercial | YiDong Electronics vs. China Construction Bank |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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