Correlation Between Zhejiang Yinlun and Chinese Universe
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Chinese Universe Publishing, you can compare the effects of market volatilities on Zhejiang Yinlun and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Chinese Universe.
Diversification Opportunities for Zhejiang Yinlun and Chinese Universe
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Chinese is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Zhejiang Yinlun i.e., Zhejiang Yinlun and Chinese Universe go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Chinese Universe
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 0.81 times more return on investment than Chinese Universe. However, Zhejiang Yinlun Machinery is 1.23 times less risky than Chinese Universe. It trades about -0.15 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.29 per unit of risk. If you would invest 1,922 in Zhejiang Yinlun Machinery on August 29, 2024 and sell it today you would lose (132.00) from holding Zhejiang Yinlun Machinery or give up 6.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. Chinese Universe Publishing
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Chinese Universe Pub |
Zhejiang Yinlun and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Chinese Universe
The main advantage of trading using opposite Zhejiang Yinlun and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Zhejiang Yinlun vs. Loongson Technology Corp | Zhejiang Yinlun vs. Chongqing Road Bridge | Zhejiang Yinlun vs. Shenzhen Fortune Trend | Zhejiang Yinlun vs. Wuhan Xianglong Power |
| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets |