Correlation Between YiDong Electronics and Jiujiang Shanshui
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By analyzing existing cross correlation between YiDong Electronics Technology and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on YiDong Electronics and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Jiujiang Shanshui.
Diversification Opportunities for YiDong Electronics and Jiujiang Shanshui
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between YiDong and Jiujiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of YiDong Electronics i.e., YiDong Electronics and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between YiDong Electronics and Jiujiang Shanshui
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 1.34 times more return on investment than Jiujiang Shanshui. However, YiDong Electronics is 1.34 times more volatile than Jiujiang Shanshui Technology. It trades about 0.17 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.18 per unit of risk. If you would invest 1,481 in YiDong Electronics Technology on September 13, 2024 and sell it today you would earn a total of 645.00 from holding YiDong Electronics Technology or generate 43.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
YiDong Electronics Technology vs. Jiujiang Shanshui Technology
Performance |
Timeline |
YiDong Electronics |
Jiujiang Shanshui |
YiDong Electronics and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YiDong Electronics and Jiujiang Shanshui
The main advantage of trading using opposite YiDong Electronics and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.YiDong Electronics vs. Industrial and Commercial | YiDong Electronics vs. Agricultural Bank of | YiDong Electronics vs. China Construction Bank | YiDong Electronics vs. Bank of China |
Jiujiang Shanshui vs. Guangzhou Ruoyuchen Information | Jiujiang Shanshui vs. ButOne Information Corp | Jiujiang Shanshui vs. Zhuhai Comleader Information | Jiujiang Shanshui vs. Yangmei Chemical Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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