Correlation Between Zhejiang Yueling and Yangmei Chemical
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By analyzing existing cross correlation between Zhejiang Yueling Co and Yangmei Chemical Co, you can compare the effects of market volatilities on Zhejiang Yueling and Yangmei Chemical 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 Yueling with a short position of Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yueling and Yangmei Chemical.
Diversification Opportunities for Zhejiang Yueling and Yangmei Chemical
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Yangmei is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yueling Co and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical and Zhejiang Yueling 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 Yueling Co are associated (or correlated) with Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Zhejiang Yueling i.e., Zhejiang Yueling and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Zhejiang Yueling and Yangmei Chemical
Assuming the 90 days trading horizon Zhejiang Yueling Co is expected to generate 1.1 times more return on investment than Yangmei Chemical. However, Zhejiang Yueling is 1.1 times more volatile than Yangmei Chemical Co. It trades about 0.21 of its potential returns per unit of risk. Yangmei Chemical Co is currently generating about -0.02 per unit of risk. If you would invest 1,189 in Zhejiang Yueling Co on December 4, 2024 and sell it today you would earn a total of 83.00 from holding Zhejiang Yueling Co or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yueling Co vs. Yangmei Chemical Co
Performance |
| Timeline |
| Zhejiang Yueling |
| Yangmei Chemical |
Zhejiang Yueling and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yueling and Yangmei Chemical
The main advantage of trading using opposite Zhejiang Yueling and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yueling position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical's long position.| Zhejiang Yueling vs. Chahua Modern Housewares | Zhejiang Yueling vs. Allwin Telecommunication Co | Zhejiang Yueling vs. Bank of Communications | Zhejiang Yueling vs. Queclink Wireless Solutions |
| Yangmei Chemical vs. Shanghai Shuixing Home | Yangmei Chemical vs. Shanghai Rongtai Health | Yangmei Chemical vs. Shandong Sinoglory Health | Yangmei Chemical vs. Ningbo Homelink Eco iTech |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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