Correlation Between Zhejiang Kingland and Yili Chuanning
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Zhejiang Kingland and Yili Chuanning 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 Kingland with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Yili Chuanning.
Diversification Opportunities for Zhejiang Kingland and Yili Chuanning
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Yili is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote and Zhejiang Kingland 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 Kingland Pipeline are associated (or correlated) with Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Yili Chuanning go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Yili Chuanning
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the Yili Chuanning. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Kingland Pipeline is 1.05 times less risky than Yili Chuanning. The stock trades about -0.42 of its potential returns per unit of risk. The Yili Chuanning Biotechnology is currently generating about -0.39 of returns per unit of risk over similar time horizon. If you would invest 1,264 in Yili Chuanning Biotechnology on October 16, 2024 and sell it today you would lose (137.00) from holding Yili Chuanning Biotechnology or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Zhejiang Kingland |
| Yili Chuanning Biote |
Zhejiang Kingland and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Yili Chuanning
The main advantage of trading using opposite Zhejiang Kingland and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Zhejiang Kingland vs. Ziel Home Furnishing | Zhejiang Kingland vs. Shandong Homey Aquatic | Zhejiang Kingland vs. Markor International Home | Zhejiang Kingland vs. Hunan Mendale Hometextile |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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