Correlation Between Jiaozuo Wanfang and Sichuan Yahua
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Jiaozuo Wanfang and Sichuan Yahua 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 Jiaozuo Wanfang with a short position of Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Sichuan Yahua.
Diversification Opportunities for Jiaozuo Wanfang and Sichuan Yahua
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiaozuo and Sichuan is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum are associated (or correlated) with Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Sichuan Yahua
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to generate 1.01 times more return on investment than Sichuan Yahua. However, Jiaozuo Wanfang is 1.01 times more volatile than Sichuan Yahua Industrial. It trades about 0.03 of its potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about -0.04 per unit of risk. If you would invest 550.00 in Jiaozuo Wanfang Aluminum on October 16, 2024 and sell it today you would earn a total of 163.00 from holding Jiaozuo Wanfang Aluminum or generate 29.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Sichuan Yahua Industrial
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Sichuan Yahua Industrial |
Jiaozuo Wanfang and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Sichuan Yahua
The main advantage of trading using opposite Jiaozuo Wanfang and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.| Jiaozuo Wanfang vs. Zijin Mining Group | Jiaozuo Wanfang vs. Wanhua Chemical Group | Jiaozuo Wanfang vs. Baoshan Iron Steel | Jiaozuo Wanfang vs. Shandong Gold Mining |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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