Correlation Between Shenzhen Centralcon and Yonyou Auto
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Yonyou Auto Information, you can compare the effects of market volatilities on Shenzhen Centralcon and Yonyou Auto 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 Shenzhen Centralcon with a short position of Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Yonyou Auto.
Diversification Opportunities for Shenzhen Centralcon and Yonyou Auto
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Yonyou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Yonyou Auto Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonyou Auto Information and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Yonyou Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonyou Auto Information has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Yonyou Auto go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Yonyou Auto
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 0.99 times more return on investment than Yonyou Auto. However, Shenzhen Centralcon Investment is 1.01 times less risky than Yonyou Auto. It trades about 0.12 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about 0.11 per unit of risk. If you would invest 408.00 in Shenzhen Centralcon Investment on September 25, 2024 and sell it today you would earn a total of 100.00 from holding Shenzhen Centralcon Investment or generate 24.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Centralcon Investment vs. Yonyou Auto Information
Performance |
Timeline |
Shenzhen Centralcon |
Yonyou Auto Information |
Shenzhen Centralcon and Yonyou Auto Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Centralcon and Yonyou Auto
The main advantage of trading using opposite Shenzhen Centralcon and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Yonyou Auto 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 Yonyou Auto will offset losses from the drop in Yonyou Auto's long position.Shenzhen Centralcon vs. PetroChina Co Ltd | Shenzhen Centralcon vs. China Mobile Limited | Shenzhen Centralcon vs. CNOOC Limited | Shenzhen Centralcon vs. Ping An Insurance |
Yonyou Auto vs. Yankershop Food Co | Yonyou Auto vs. Shenzhen Centralcon Investment | Yonyou Auto vs. Zhejiang Construction Investment | Yonyou Auto vs. Jiangxi Sunshine Dairy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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