Correlation Between Shandong Ruifeng and Yes Optoelectronics
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and Yes Optoelectronics Co, you can compare the effects of market volatilities on Shandong Ruifeng 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 Shandong Ruifeng with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and Yes Optoelectronics.
Diversification Opportunities for Shandong Ruifeng and Yes Optoelectronics
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shandong and Yes is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Shandong Ruifeng 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 Shandong Ruifeng Chemical 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 Shandong Ruifeng i.e., Shandong Ruifeng and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and Yes Optoelectronics
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to under-perform the Yes Optoelectronics. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Ruifeng Chemical is 1.18 times less risky than Yes Optoelectronics. The stock trades about -0.02 of its potential returns per unit of risk. The Yes Optoelectronics Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,105 in Yes Optoelectronics Co on July 19, 2025 and sell it today you would lose (28.00) from holding Yes Optoelectronics Co or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| Yes Optoelectronics |
Shandong Ruifeng and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and Yes Optoelectronics
The main advantage of trading using opposite Shandong Ruifeng and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng 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.| Shandong Ruifeng vs. Oriental Times Media | Shandong Ruifeng vs. Shenzhen Silver Basis | Shandong Ruifeng vs. Dalian Zeus Entertainment | Shandong Ruifeng vs. Shenzhen AV Display Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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