Correlation Between Yunnan Yuntou and Zhejiang Weixing
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By analyzing existing cross correlation between Yunnan Yuntou Ecology and Zhejiang Weixing New, you can compare the effects of market volatilities on Yunnan Yuntou and Zhejiang Weixing 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 Yunnan Yuntou with a short position of Zhejiang Weixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Yuntou and Zhejiang Weixing.
Diversification Opportunities for Yunnan Yuntou and Zhejiang Weixing
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and Zhejiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Yuntou Ecology and Zhejiang Weixing New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Weixing New and Yunnan Yuntou 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 Yunnan Yuntou Ecology are associated (or correlated) with Zhejiang Weixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Weixing New has no effect on the direction of Yunnan Yuntou i.e., Yunnan Yuntou and Zhejiang Weixing go up and down completely randomly.
Pair Corralation between Yunnan Yuntou and Zhejiang Weixing
Assuming the 90 days trading horizon Yunnan Yuntou Ecology is expected to generate 0.93 times more return on investment than Zhejiang Weixing. However, Yunnan Yuntou Ecology is 1.07 times less risky than Zhejiang Weixing. It trades about -0.03 of its potential returns per unit of risk. Zhejiang Weixing New is currently generating about -0.04 per unit of risk. If you would invest 851.00 in Yunnan Yuntou Ecology on August 26, 2024 and sell it today you would lose (233.00) from holding Yunnan Yuntou Ecology or give up 27.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Yuntou Ecology vs. Zhejiang Weixing New
Performance |
| Timeline |
| Yunnan Yuntou Ecology |
| Zhejiang Weixing New |
Yunnan Yuntou and Zhejiang Weixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Yuntou and Zhejiang Weixing
The main advantage of trading using opposite Yunnan Yuntou and Zhejiang Weixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Yuntou position performs unexpectedly, Zhejiang Weixing 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 Zhejiang Weixing will offset losses from the drop in Zhejiang Weixing's long position.| Yunnan Yuntou vs. Fiberhome Telecommunication Technologies | Yunnan Yuntou vs. Wuhan Yangtze Communication | Yunnan Yuntou vs. Shenzhen Clou Electronics | Yunnan Yuntou vs. Hangzhou Weiguang Electronic |
| Zhejiang Weixing vs. Agricultural Bank of | Zhejiang Weixing vs. Industrial and Commercial | Zhejiang Weixing vs. Bank of China | Zhejiang Weixing vs. China Construction Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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