Correlation Between Zhejiang JIULI and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Zhejiang JIULI and Beijing HuaYuanYiTong 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 JIULI with a short position of Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Beijing HuaYuanYiTong.
Diversification Opportunities for Zhejiang JIULI and Beijing HuaYuanYiTong
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Beijing is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong and Zhejiang JIULI 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 JIULI Hi tech are associated (or correlated) with Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.56 times more return on investment than Beijing HuaYuanYiTong. However, Zhejiang JIULI Hi tech is 1.8 times less risky than Beijing HuaYuanYiTong. It trades about -0.28 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about -0.54 per unit of risk. If you would invest 2,470 in Zhejiang JIULI Hi tech on October 11, 2024 and sell it today you would lose (151.00) from holding Zhejiang JIULI Hi tech or give up 6.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Beijing HuaYuanYiTong |
Zhejiang JIULI and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Beijing HuaYuanYiTong
The main advantage of trading using opposite Zhejiang JIULI and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| Zhejiang JIULI vs. Shenzhen Noposion Agrochemicals | Zhejiang JIULI vs. Industrial Bank Co | Zhejiang JIULI vs. GRG Banking Equipment | Zhejiang JIULI vs. China Everbright Bank |
| Beijing HuaYuanYiTong vs. Zijin Mining Group | Beijing HuaYuanYiTong vs. Ningbo Fangzheng Automobile | Beijing HuaYuanYiTong vs. Western Mining Co | Beijing HuaYuanYiTong vs. Jinhui Mining 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 CEOs Directory module to screen CEOs from public companies around the world.
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