Correlation Between Yonyou Auto and Road Environment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yonyou Auto Information and Road Environment Technology, you can compare the effects of market volatilities on Yonyou Auto and Road Environment 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 Yonyou Auto with a short position of Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and Road Environment.
Diversification Opportunities for Yonyou Auto and Road Environment
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yonyou and Road is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec and Yonyou Auto 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 Yonyou Auto Information are associated (or correlated) with Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Yonyou Auto i.e., Yonyou Auto and Road Environment go up and down completely randomly.
Pair Corralation between Yonyou Auto and Road Environment
Assuming the 90 days trading horizon Yonyou Auto is expected to generate 1.23 times less return on investment than Road Environment. But when comparing it to its historical volatility, Yonyou Auto Information is 1.02 times less risky than Road Environment. It trades about 0.11 of its potential returns per unit of risk. Road Environment Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,072 in Road Environment Technology on September 25, 2024 and sell it today you would earn a total of 302.00 from holding Road Environment Technology or generate 28.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Yonyou Auto Information vs. Road Environment Technology
Performance |
Timeline |
Yonyou Auto Information |
Road Environment Tec |
Yonyou Auto and Road Environment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yonyou Auto and Road Environment
The main advantage of trading using opposite Yonyou Auto and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.Yonyou Auto vs. Yankershop Food Co | Yonyou Auto vs. Shenzhen Centralcon Investment | Yonyou Auto vs. Zhejiang Construction Investment | Yonyou Auto vs. Jiangxi Sunshine Dairy |
Road Environment vs. Sportsoul Co Ltd | Road Environment vs. Lander Sports Development | Road Environment vs. Shanghai Construction Group | Road Environment vs. China Railway Construction |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |