Correlation Between Yuan Longping and Eastern Communications
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By analyzing existing cross correlation between Yuan Longping High tech and Eastern Communications Co, you can compare the effects of market volatilities on Yuan Longping and Eastern Communications 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 Yuan Longping with a short position of Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Eastern Communications.
Diversification Opportunities for Yuan Longping and Eastern Communications
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yuan and Eastern is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications and Yuan Longping 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 Yuan Longping High tech are associated (or correlated) with Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Yuan Longping i.e., Yuan Longping and Eastern Communications go up and down completely randomly.
Pair Corralation between Yuan Longping and Eastern Communications
Assuming the 90 days trading horizon Yuan Longping is expected to generate 1.51 times less return on investment than Eastern Communications. But when comparing it to its historical volatility, Yuan Longping High tech is 1.02 times less risky than Eastern Communications. It trades about 0.14 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Eastern Communications Co on September 15, 2024 and sell it today you would earn a total of 12.00 from holding Eastern Communications Co or generate 38.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Yuan Longping High tech vs. Eastern Communications Co
Performance |
Timeline |
Yuan Longping High |
Eastern Communications |
Yuan Longping and Eastern Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yuan Longping and Eastern Communications
The main advantage of trading using opposite Yuan Longping and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.Yuan Longping vs. Eastern Communications Co | Yuan Longping vs. Sichuan Teway Food | Yuan Longping vs. Zhongyin Babi Food | Yuan Longping vs. Namchow Food Group |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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