Correlation Between China Asset and Yes Optoelectronics
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By analyzing existing cross correlation between China Asset Management and Yes Optoelectronics Co, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Yes Optoelectronics.
Diversification Opportunities for China Asset and Yes Optoelectronics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Yes is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between China Asset and Yes Optoelectronics
Assuming the 90 days trading horizon China Asset is expected to generate 3.14 times less return on investment than Yes Optoelectronics. But when comparing it to its historical volatility, China Asset Management is 4.84 times less risky than Yes Optoelectronics. It trades about 0.08 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,558 in Yes Optoelectronics Co on September 23, 2024 and sell it today you would earn a total of 1,164 from holding Yes Optoelectronics Co or generate 74.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China Asset Management vs. Yes Optoelectronics Co
Performance |
Timeline |
China Asset Management |
Yes Optoelectronics |
China Asset and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Asset and Yes Optoelectronics
The main advantage of trading using opposite China Asset and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.China Asset vs. Shanghai Shuixing Home | China Asset vs. Ningbo Homelink Eco iTech | China Asset vs. Vohringer Home Technology | China Asset vs. Zhangjiagang Elegant Home |
Yes Optoelectronics vs. Cowealth Medical China | Yes Optoelectronics vs. Zhonghong Pulin Medical | Yes Optoelectronics vs. Huaxia Fund Management | Yes Optoelectronics vs. China Asset Management |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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