Correlation Between Yingde Greatchem and ZTE Corp
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and ZTE Corp, you can compare the effects of market volatilities on Yingde Greatchem and ZTE Corp 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 Yingde Greatchem with a short position of ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and ZTE Corp.
Diversification Opportunities for Yingde Greatchem and ZTE Corp
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yingde and ZTE is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and ZTE Corp go up and down completely randomly.
Pair Corralation between Yingde Greatchem and ZTE Corp
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the ZTE Corp. But the stock apears to be less risky and, when comparing its historical volatility, Yingde Greatchem Chemicals is 1.57 times less risky than ZTE Corp. The stock trades about -0.11 of its potential returns per unit of risk. The ZTE Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,606 in ZTE Corp on October 11, 2024 and sell it today you would earn a total of 231.00 from holding ZTE Corp or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. ZTE Corp
Performance |
| Timeline |
| Yingde Greatchem Che |
| ZTE Corp |
Yingde Greatchem and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and ZTE Corp
The main advantage of trading using opposite Yingde Greatchem and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| Yingde Greatchem vs. Xiamen Bank Co | Yingde Greatchem vs. Lecron Energy Saving | Yingde Greatchem vs. Shenzhen Glory Medical | Yingde Greatchem vs. Peoples Insurance of |
| ZTE Corp vs. Meinian Onehealth Healthcare | ZTE Corp vs. Anhui Huaren Health | ZTE Corp vs. Lontium Semiconductor Corp | ZTE Corp vs. Will Semiconductor Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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