Correlation Between Zhejiang Yinlun and Longjian Road
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Longjian Road Bridge, you can compare the effects of market volatilities on Zhejiang Yinlun and Longjian Road 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 Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Longjian Road.
Diversification Opportunities for Zhejiang Yinlun and Longjian Road
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Longjian is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge 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 Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of Zhejiang Yinlun i.e., Zhejiang Yinlun and Longjian Road go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Longjian Road
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 0.82 times more return on investment than Longjian Road. However, Zhejiang Yinlun Machinery is 1.21 times less risky than Longjian Road. It trades about 0.04 of its potential returns per unit of risk. Longjian Road Bridge is currently generating about 0.02 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. Longjian Road Bridge
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Longjian Road Bridge |
Zhejiang Yinlun and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Longjian Road
The main advantage of trading using opposite Zhejiang Yinlun and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road'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 |
| Longjian Road vs. Ming Yang Smart | Longjian Road vs. 159681 | Longjian Road vs. 159005 | Longjian Road vs. Loctek Ergonomic Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |