Correlation Between Hunan Mendale and Zhejiang Yayi
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Hunan Mendale and Zhejiang Yayi 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 Hunan Mendale with a short position of Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Zhejiang Yayi.
Diversification Opportunities for Hunan Mendale and Zhejiang Yayi
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hunan and Zhejiang is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal and Hunan Mendale 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 Hunan Mendale Hometextile are associated (or correlated) with Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Hunan Mendale and Zhejiang Yayi
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 2.74 times more return on investment than Zhejiang Yayi. However, Hunan Mendale is 2.74 times more volatile than Zhejiang Yayi Metal. It trades about 0.14 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about -0.02 per unit of risk. If you would invest 287.00 in Hunan Mendale Hometextile on October 23, 2024 and sell it today you would earn a total of 44.00 from holding Hunan Mendale Hometextile or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Zhejiang Yayi Metal |
Hunan Mendale and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Zhejiang Yayi
The main advantage of trading using opposite Hunan Mendale and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Zhejiang Yayi 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 Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Hunan Mendale vs. Kingclean Electric Co | Hunan Mendale vs. Dhc Software Co | Hunan Mendale vs. Sinofibers Technology Co | Hunan Mendale vs. Shaanxi Meineng Clean |
| Zhejiang Yayi vs. Porton Fine Chemicals | Zhejiang Yayi vs. Silkroad Visual Technology | Zhejiang Yayi vs. Jiangsu Broadcasting Cable | Zhejiang Yayi vs. Zhejiang Kingland Pipeline |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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