Correlation Between Zhejiang Yayi and Longxing Chemical
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Longxing Chemical Stock, you can compare the effects of market volatilities on Zhejiang Yayi and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Longxing Chemical.
Diversification Opportunities for Zhejiang Yayi and Longxing Chemical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Longxing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Longxing Chemical go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Longxing Chemical
Assuming the 90 days trading horizon Zhejiang Yayi is expected to generate 24.33 times less return on investment than Longxing Chemical. In addition to that, Zhejiang Yayi is 1.33 times more volatile than Longxing Chemical Stock. It trades about 0.0 of its total potential returns per unit of risk. Longxing Chemical Stock is currently generating about 0.03 per unit of volatility. If you would invest 491.00 in Longxing Chemical Stock on September 12, 2024 and sell it today you would earn a total of 69.00 from holding Longxing Chemical Stock or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Longxing Chemical Stock
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Longxing Chemical Stock |
Zhejiang Yayi and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Longxing Chemical
The main advantage of trading using opposite Zhejiang Yayi and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Zhejiang Yayi vs. Lutian Machinery Co | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. Bank of China | Zhejiang Yayi vs. Gansu Jiu Steel |
| Longxing Chemical vs. Zhejiang Yayi Metal | Longxing Chemical vs. Jiangsu Jinling Sports | Longxing Chemical vs. Uroica Mining Safety | Longxing Chemical vs. Shengda Mining 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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