Correlation Between GM and Yes Optoelectronics
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By analyzing existing cross correlation between General Motors and Yes Optoelectronics Co, you can compare the effects of market volatilities on GM and Yes Optoelectronics 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 GM with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Yes Optoelectronics.
Diversification Opportunities for GM and Yes Optoelectronics
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GM and Yes is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and GM 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 General Motors are associated (or correlated) with Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of GM i.e., GM and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between GM and Yes Optoelectronics
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.69 times more return on investment than Yes Optoelectronics. However, General Motors is 1.45 times less risky than Yes Optoelectronics. It trades about -0.05 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.08 per unit of risk. If you would invest 5,240 in General Motors on December 13, 2024 and sell it today you would lose (450.00) from holding General Motors or give up 8.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.61% |
Values | Daily Returns |
General Motors vs. Yes Optoelectronics Co
Performance |
Timeline |
General Motors |
Yes Optoelectronics |
GM and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GM and Yes Optoelectronics
The main advantage of trading using opposite GM and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.The idea behind General Motors and Yes Optoelectronics Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Yes Optoelectronics vs. Ningbo Fangzheng Automobile | Yes Optoelectronics vs. Quectel Wireless Solutions | Yes Optoelectronics vs. Digital China Information | Yes Optoelectronics vs. China Mobile Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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