Correlation Between Beijing YanDong and Jiangxi Lianchuang
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By analyzing existing cross correlation between Beijing YanDong MicroElectronic and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Beijing YanDong and Jiangxi Lianchuang 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 Beijing YanDong with a short position of Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing YanDong and Jiangxi Lianchuang.
Diversification Opportunities for Beijing YanDong and Jiangxi Lianchuang
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Jiangxi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Beijing YanDong MicroElectroni and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto and Beijing YanDong 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 Beijing YanDong MicroElectronic are associated (or correlated) with Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Beijing YanDong i.e., Beijing YanDong and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Beijing YanDong and Jiangxi Lianchuang
Assuming the 90 days trading horizon Beijing YanDong MicroElectronic is expected to generate 1.4 times more return on investment than Jiangxi Lianchuang. However, Beijing YanDong is 1.4 times more volatile than Jiangxi Lianchuang Opto electronic. It trades about 0.11 of its potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.08 per unit of risk. If you would invest 1,965 in Beijing YanDong MicroElectronic on August 5, 2025 and sell it today you would earn a total of 488.00 from holding Beijing YanDong MicroElectronic or generate 24.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing YanDong MicroElectroni vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Beijing YanDong Micr |
| Jiangxi Lianchuang Opto |
Beijing YanDong and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing YanDong and Jiangxi Lianchuang
The main advantage of trading using opposite Beijing YanDong and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing YanDong position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Beijing YanDong vs. Hunan Mendale Hometextile | Beijing YanDong vs. Shaanxi Energy Investment | Beijing YanDong vs. Huawen Media Investment | Beijing YanDong vs. Metro Investment Development |
| Jiangxi Lianchuang vs. Fujian Oriental Silver | Jiangxi Lianchuang vs. Tianjin Silvery Dragon | Jiangxi Lianchuang vs. Jinhui Mining Co | Jiangxi Lianchuang vs. Union Semiconductor 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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