Correlation Between Zhejiang Yinlun and China Union
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and China Union Holdings, you can compare the effects of market volatilities on Zhejiang Yinlun and China Union 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 Zhejiang Yinlun with a short position of China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and China Union.
Diversification Opportunities for Zhejiang Yinlun and China Union
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and China is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings and Zhejiang Yinlun 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 Zhejiang Yinlun Machinery are associated (or correlated) with China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Zhejiang Yinlun i.e., Zhejiang Yinlun and China Union go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and China Union
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 1.02 times more return on investment than China Union. However, Zhejiang Yinlun is 1.02 times more volatile than China Union Holdings. It trades about 0.27 of its potential returns per unit of risk. China Union Holdings is currently generating about 0.12 per unit of risk. If you would invest 1,787 in Zhejiang Yinlun Machinery on November 6, 2024 and sell it today you would earn a total of 229.00 from holding Zhejiang Yinlun Machinery or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. China Union Holdings
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| China Union Holdings |
Zhejiang Yinlun and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and China Union
The main advantage of trading using opposite Zhejiang Yinlun and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.| Zhejiang Yinlun vs. Fujian Oriental Silver | Zhejiang Yinlun vs. Offshore Oil Engineering | Zhejiang Yinlun vs. Bosera CMSK Industrial | Zhejiang Yinlun vs. Ningbo Fujia Industrial |
| China Union vs. Ye Chiu Metal | China Union vs. Shandong Hongchuang Aluminum | China Union vs. China Aluminum International | China Union vs. Western Metal Materials |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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