Correlation Between Zhejiang Yinlun and Gan Yuan
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Gan Yuan Foods, you can compare the effects of market volatilities on Zhejiang Yinlun and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Gan Yuan.
Diversification Opportunities for Zhejiang Yinlun and Gan Yuan
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and Gan is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Zhejiang Yinlun i.e., Zhejiang Yinlun and Gan Yuan go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Gan Yuan
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 1.02 times more return on investment than Gan Yuan. However, Zhejiang Yinlun is 1.02 times more volatile than Gan Yuan Foods. It trades about 0.03 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.02 per unit of risk. If you would invest 1,515 in Zhejiang Yinlun Machinery on October 14, 2024 and sell it today you would earn a total of 387.00 from holding Zhejiang Yinlun Machinery or generate 25.54% 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. Gan Yuan Foods
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Gan Yuan Foods |
Zhejiang Yinlun and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Gan Yuan
The main advantage of trading using opposite Zhejiang Yinlun and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Zhejiang Yinlun vs. Runjian Communication Co | Zhejiang Yinlun vs. Guangdong Shenglu Telecommunication | Zhejiang Yinlun vs. Jiaozuo Wanfang Aluminum | Zhejiang Yinlun vs. Chongqing Shunbo Aluminum |
| Gan Yuan vs. Zhejiang Yinlun Machinery | Gan Yuan vs. Shenzhen Zhongzhuang Construction | Gan Yuan vs. Jinsanjiang Silicon Material | Gan Yuan vs. Huasi Agricultural Development |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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