Correlation Between Hunan Mendale and Zhejiang Yongjin
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Hunan Mendale and Zhejiang Yongjin 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 Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Zhejiang Yongjin.
Diversification Opportunities for Hunan Mendale and Zhejiang Yongjin
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hunan and Zhejiang is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin 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 Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Hunan Mendale and Zhejiang Yongjin
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 4.43 times more return on investment than Zhejiang Yongjin. However, Hunan Mendale is 4.43 times more volatile than Zhejiang Yongjin Metal. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.06 per unit of risk. If you would invest 290.00 in Hunan Mendale Hometextile on October 20, 2024 and sell it today you would earn a total of 11.00 from holding Hunan Mendale Hometextile or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Zhejiang Yongjin Metal |
Hunan Mendale and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Zhejiang Yongjin
The main advantage of trading using opposite Hunan Mendale and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Zhejiang Yongjin 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 Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| Hunan Mendale vs. Ningxia Building Materials | Hunan Mendale vs. China Aluminum International | Hunan Mendale vs. Cangzhou Mingzhu Plastic | Hunan Mendale vs. Chongqing Shunbo Aluminum |
| Zhejiang Yongjin vs. Bank of Communications | Zhejiang Yongjin vs. FSPG Hi Tech Co | Zhejiang Yongjin vs. Sichuan Jinshi Technology | Zhejiang Yongjin vs. Porton Fine Chemicals |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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