Correlation Between Zhejiang Yinlun and Shaanxi Broadcast
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Zhejiang Yinlun and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Shaanxi Broadcast.
Diversification Opportunities for Zhejiang Yinlun and Shaanxi Broadcast
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Shaanxi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Zhejiang Yinlun i.e., Zhejiang Yinlun and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Shaanxi Broadcast
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 0.87 times more return on investment than Shaanxi Broadcast. However, Zhejiang Yinlun Machinery is 1.15 times less risky than Shaanxi Broadcast. It trades about 0.04 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.04 per unit of risk. If you would invest 1,370 in Zhejiang Yinlun Machinery on August 25, 2024 and sell it today you would earn a total of 473.00 from holding Zhejiang Yinlun Machinery or generate 34.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Shaanxi Broadcast |
Zhejiang Yinlun and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Shaanxi Broadcast
The main advantage of trading using opposite Zhejiang Yinlun and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Zhejiang Yinlun vs. Suzhou Mingzhi Technology | Zhejiang Yinlun vs. Zhejiang JIULI Hi tech | Zhejiang Yinlun vs. UE Furniture Co | Zhejiang Yinlun vs. Zoy Home Furnishing |
| Shaanxi Broadcast vs. Rising Nonferrous Metals | Shaanxi Broadcast vs. Western Metal Materials | Shaanxi Broadcast vs. Ningbo Construction Co | Shaanxi Broadcast vs. Lutian Machinery 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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