Correlation Between Zhejiang Tailin and Sichuan Yahua
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By analyzing existing cross correlation between Zhejiang Tailin Bioengineering and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Zhejiang Tailin and Sichuan Yahua 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 Tailin with a short position of Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Tailin and Sichuan Yahua.
Diversification Opportunities for Zhejiang Tailin and Sichuan Yahua
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Sichuan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Tailin Bioengineering and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial and Zhejiang Tailin 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 Tailin Bioengineering are associated (or correlated) with Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Zhejiang Tailin i.e., Zhejiang Tailin and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Zhejiang Tailin and Sichuan Yahua
Assuming the 90 days trading horizon Zhejiang Tailin Bioengineering is expected to under-perform the Sichuan Yahua. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Tailin Bioengineering is 1.15 times less risky than Sichuan Yahua. The stock trades about -0.21 of its potential returns per unit of risk. The Sichuan Yahua Industrial is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,285 in Sichuan Yahua Industrial on October 17, 2024 and sell it today you would lose (13.00) from holding Sichuan Yahua Industrial or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhejiang Tailin Bioengineering vs. Sichuan Yahua Industrial
Performance |
| Timeline |
| Zhejiang Tailin Bioe |
| Sichuan Yahua Industrial |
Zhejiang Tailin and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Tailin and Sichuan Yahua
The main advantage of trading using opposite Zhejiang Tailin and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Tailin position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.| Zhejiang Tailin vs. Gifore Agricultural Machinery | Zhejiang Tailin vs. Masterwork Machinery | Zhejiang Tailin vs. Jonjee Hi tech Industrial | Zhejiang Tailin vs. Sichuan Yahua Industrial |
| Sichuan Yahua vs. DO Home Collection | Sichuan Yahua vs. Fiberhome Telecommunication Technologies | Sichuan Yahua vs. Shanghai Shuixing Home | Sichuan Yahua vs. UE Furniture 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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