Correlation Between Zhejiang Yayi and Central China
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Central China Land, you can compare the effects of market volatilities on Zhejiang Yayi and Central China 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 Yayi with a short position of Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Central China.
Diversification Opportunities for Zhejiang Yayi and Central China
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Central is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land and Zhejiang Yayi 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 Yayi Metal are associated (or correlated) with Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Central China go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Central China
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.16 times more return on investment than Central China. However, Zhejiang Yayi is 1.16 times more volatile than Central China Land. It trades about 0.22 of its potential returns per unit of risk. Central China Land is currently generating about 0.08 per unit of risk. If you would invest 2,450 in Zhejiang Yayi Metal on September 4, 2024 and sell it today you would earn a total of 295.00 from holding Zhejiang Yayi Metal or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Central China Land
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Central China Land |
Zhejiang Yayi and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Central China
The main advantage of trading using opposite Zhejiang Yayi and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. China Construction Bank | Zhejiang Yayi vs. Bank of China |
| Central China vs. Chengtun Mining Group | Central China vs. Beijing SPC Environment | Central China vs. Guangdong Liantai Environmental | Central China vs. Tianjin Capital Environmental |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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