Correlation Between Guangdong Cellwise and Yoantion Industrial
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By analyzing existing cross correlation between Guangdong Cellwise Microelectronics and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on Guangdong Cellwise 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 Guangdong Cellwise with a short position of Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Cellwise and Yoantion Industrial.
Diversification Opportunities for Guangdong Cellwise and Yoantion Industrial
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Yoantion is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Cellwise Microelectr and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial and Guangdong Cellwise 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 Guangdong Cellwise Microelectronics 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 Guangdong Cellwise i.e., Guangdong Cellwise and Yoantion Industrial go up and down completely randomly.
Pair Corralation between Guangdong Cellwise and Yoantion Industrial
Assuming the 90 days trading horizon Guangdong Cellwise Microelectronics is expected to generate 1.46 times more return on investment than Yoantion Industrial. However, Guangdong Cellwise is 1.46 times more volatile than Yoantion Industrial IncLtd. It trades about 0.18 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 3,127 in Guangdong Cellwise Microelectronics on September 25, 2024 and sell it today you would earn a total of 2,064 from holding Guangdong Cellwise Microelectronics or generate 66.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Cellwise Microelectr vs. Yoantion Industrial IncLtd
Performance |
Timeline |
Guangdong Cellwise |
Yoantion Industrial |
Guangdong Cellwise and Yoantion Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Cellwise and Yoantion Industrial
The main advantage of trading using opposite Guangdong Cellwise and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Cellwise 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.Guangdong Cellwise vs. Threes Company Media | Guangdong Cellwise vs. Fujian Newland Computer | Guangdong Cellwise vs. Guangdong Shenglu Telecommunication | Guangdong Cellwise vs. Jiangxi Hengda Hi Tech |
Yoantion Industrial vs. Bank of China | Yoantion Industrial vs. Kweichow Moutai Co | Yoantion Industrial vs. PetroChina Co Ltd | Yoantion Industrial vs. Bank of Communications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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