Correlation Between Zhejiang Yayi and China Securities
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By analyzing existing cross correlation between Zhejiang Yayi Metal and China Securities 800, you can compare the effects of market volatilities on Zhejiang Yayi and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and China Securities.
Diversification Opportunities for Zhejiang Yayi and China Securities
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and China is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and China Securities go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and China Securities
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.94 times more return on investment than China Securities. However, Zhejiang Yayi is 1.94 times more volatile than China Securities 800. It trades about 0.02 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.1 per unit of risk. If you would invest 2,572 in Zhejiang Yayi Metal on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Zhejiang Yayi Metal or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. China Securities 800
Performance |
| Timeline |
Zhejiang Yayi and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Zhejiang Yayi Metal
Pair trading matchups for Zhejiang Yayi
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Zhejiang Yayi and China Securities
The main advantage of trading using opposite Zhejiang Yayi and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Zhejiang Yayi vs. China Petroleum Chemical | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. China State Construction | Zhejiang Yayi vs. China Railway Group |
| China Securities vs. Beijing Mainstreets Investment | China Securities vs. Dareway Software Co | China Securities vs. Shanghai Metersbonwe FashionAccessories | China Securities vs. Guangzhou Seagull Kitchen |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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