Correlation Between Zhejiang Yinlun and Hainan Mining
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Hainan Mining Co, you can compare the effects of market volatilities on Zhejiang Yinlun and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Hainan Mining.
Diversification Opportunities for Zhejiang Yinlun and Hainan Mining
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and Hainan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Zhejiang Yinlun i.e., Zhejiang Yinlun and Hainan Mining go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Hainan Mining
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 1.47 times more return on investment than Hainan Mining. However, Zhejiang Yinlun is 1.47 times more volatile than Hainan Mining Co. It trades about 0.15 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.15 per unit of risk. If you would invest 1,908 in Zhejiang Yinlun Machinery on October 29, 2024 and sell it today you would earn a total of 151.00 from holding Zhejiang Yinlun Machinery or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. Hainan Mining Co
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Hainan Mining |
Zhejiang Yinlun and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Hainan Mining
The main advantage of trading using opposite Zhejiang Yinlun and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Zhejiang Yinlun vs. Jiangsu Xinri E Vehicle | Zhejiang Yinlun vs. Nanning Chemical Industry | Zhejiang Yinlun vs. Shenzhen Noposion Agrochemicals | Zhejiang Yinlun vs. CIMC Vehicles Co |
| Hainan Mining vs. PKU HealthCare Corp | Hainan Mining vs. Chongqing Changan Automobile | Hainan Mining vs. Heren Health Co | Hainan Mining vs. Dongfeng Automobile 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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