Correlation Between Hygon Information and Jiangsu Yueda
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By analyzing existing cross correlation between Hygon Information Technology and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Hygon Information and Jiangsu Yueda 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 Hygon Information with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Jiangsu Yueda.
Diversification Opportunities for Hygon Information and Jiangsu Yueda
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hygon and Jiangsu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment and Hygon Information 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 Hygon Information Technology are associated (or correlated) with Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Hygon Information i.e., Hygon Information and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Hygon Information and Jiangsu Yueda
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.62 times more return on investment than Jiangsu Yueda. However, Hygon Information is 1.62 times more volatile than Jiangsu Yueda Investment. It trades about 0.2 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.13 per unit of risk. If you would invest 7,812 in Hygon Information Technology on September 24, 2024 and sell it today you would earn a total of 5,294 from holding Hygon Information Technology or generate 67.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Hygon Information Technology vs. Jiangsu Yueda Investment
Performance |
Timeline |
Hygon Information |
Jiangsu Yueda Investment |
Hygon Information and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hygon Information and Jiangsu Yueda
The main advantage of trading using opposite Hygon Information and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.Hygon Information vs. Industrial and Commercial | Hygon Information vs. Agricultural Bank of | Hygon Information vs. China Construction Bank | Hygon Information vs. Bank of China |
Jiangsu Yueda vs. Yonyou Auto Information | Jiangsu Yueda vs. StarPower Semiconductor | Jiangsu Yueda vs. Hygon Information Technology | Jiangsu Yueda vs. Longmaster Information Tech |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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