Correlation Between ACM Research and Yoantion Industrial
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By analyzing existing cross correlation between ACM Research Shanghai and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on ACM Research and Yoantion Industrial 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 ACM Research with a short position of Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACM Research and Yoantion Industrial.
Diversification Opportunities for ACM Research and Yoantion Industrial
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ACM and Yoantion is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ACM Research Shanghai and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial and ACM Research 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 ACM Research Shanghai are associated (or correlated) with Yoantion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoantion Industrial has no effect on the direction of ACM Research i.e., ACM Research and Yoantion Industrial go up and down completely randomly.
Pair Corralation between ACM Research and Yoantion Industrial
Assuming the 90 days trading horizon ACM Research Shanghai is expected to generate 1.16 times more return on investment than Yoantion Industrial. However, ACM Research is 1.16 times more volatile than Yoantion Industrial IncLtd. It trades about 0.11 of its potential returns per unit of risk. Yoantion Industrial IncLtd is currently generating about 0.06 per unit of risk. If you would invest 8,175 in ACM Research Shanghai on September 25, 2024 and sell it today you would earn a total of 2,225 from holding ACM Research Shanghai or generate 27.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
ACM Research Shanghai vs. Yoantion Industrial IncLtd
Performance |
Timeline |
ACM Research Shanghai |
Yoantion Industrial |
ACM Research and Yoantion Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACM Research and Yoantion Industrial
The main advantage of trading using opposite ACM Research and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACM Research position performs unexpectedly, Yoantion Industrial 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 Yoantion Industrial will offset losses from the drop in Yoantion Industrial's long position.ACM Research vs. Ming Yang Smart | ACM Research vs. 159681 | ACM Research vs. 159005 | ACM Research vs. Loctek Ergonomic Technology |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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