Correlation Between Tongxing Environmental and Zhejiang Yayi
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By analyzing existing cross correlation between Tongxing Environmental Protection and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Tongxing Environmental 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 Tongxing Environmental with a short position of Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongxing Environmental and Zhejiang Yayi.
Diversification Opportunities for Tongxing Environmental and Zhejiang Yayi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongxing and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tongxing Environmental Protect 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 Tongxing Environmental 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 Tongxing Environmental Protection 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 Tongxing Environmental i.e., Tongxing Environmental and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Tongxing Environmental and Zhejiang Yayi
Assuming the 90 days trading horizon Tongxing Environmental Protection is expected to generate 0.94 times more return on investment than Zhejiang Yayi. However, Tongxing Environmental Protection is 1.07 times less risky than Zhejiang Yayi. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.0 per unit of risk. If you would invest 1,806 in Tongxing Environmental Protection on September 2, 2024 and sell it today you would lose (156.00) from holding Tongxing Environmental Protection or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongxing Environmental Protect vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Tongxing Environmental |
| Zhejiang Yayi Metal |
Tongxing Environmental and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongxing Environmental and Zhejiang Yayi
The main advantage of trading using opposite Tongxing Environmental and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongxing Environmental 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.| Tongxing Environmental vs. Bank of China | Tongxing Environmental vs. Kweichow Moutai Co | Tongxing Environmental vs. PetroChina Co Ltd | Tongxing Environmental vs. Bank of Communications |
| Zhejiang Yayi vs. Zoje Resources Investment | Zhejiang Yayi vs. Luyin Investment Group | Zhejiang Yayi vs. Hefei Metalforming Mach | Zhejiang Yayi vs. Shanghai Material Trading |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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