Correlation Between Zhejiang Yinlun and Suzhou Mingzhi
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Zhejiang Yinlun and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Suzhou Mingzhi.
Diversification Opportunities for Zhejiang Yinlun and Suzhou Mingzhi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Suzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Zhejiang Yinlun i.e., Zhejiang Yinlun and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Suzhou Mingzhi
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 0.75 times more return on investment than Suzhou Mingzhi. However, Zhejiang Yinlun Machinery is 1.34 times less risky than Suzhou Mingzhi. It trades about 0.04 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about -0.03 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Suzhou Mingzhi Technology |
Zhejiang Yinlun and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Suzhou Mingzhi
The main advantage of trading using opposite Zhejiang Yinlun and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi'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 |
| Suzhou Mingzhi vs. Agricultural Bank of | Suzhou Mingzhi vs. Industrial and Commercial | Suzhou Mingzhi vs. Bank of China | Suzhou Mingzhi vs. PetroChina Co Ltd |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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