Correlation Between Zhejiang Yayi and Chenzhou Jingui
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Zhejiang Yayi and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Chenzhou Jingui.
Diversification Opportunities for Zhejiang Yayi and Chenzhou Jingui
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Chenzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Chenzhou Jingui
Assuming the 90 days trading horizon Zhejiang Yayi is expected to generate 13.83 times less return on investment than Chenzhou Jingui. In addition to that, Zhejiang Yayi is 1.14 times more volatile than Chenzhou Jingui Silver. It trades about 0.0 of its total potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.05 per unit of volatility. If you would invest 280.00 in Chenzhou Jingui Silver on September 3, 2024 and sell it today you would earn a total of 84.00 from holding Chenzhou Jingui Silver or generate 30.0% 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. Chenzhou Jingui Silver
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Chenzhou Jingui Silver |
Zhejiang Yayi and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Chenzhou Jingui
The main advantage of trading using opposite Zhejiang Yayi and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Zhejiang Yayi vs. Ningxia Building Materials | Zhejiang Yayi vs. Super Dragon Engineering Plastics | Zhejiang Yayi vs. Dawning Information Industry | Zhejiang Yayi vs. Xinke Material |
| Chenzhou Jingui vs. Songz Automobile Air | Chenzhou Jingui vs. Anhui Jianghuai Automobile | Chenzhou Jingui vs. Zhejiang Yayi Metal | Chenzhou Jingui vs. Xinjiang Communications Construction |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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