Correlation Between Zhejiang Yayi and Marssenger Kitchenware
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Zhejiang Yayi and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Marssenger Kitchenware.
Diversification Opportunities for Zhejiang Yayi and Marssenger Kitchenware
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Marssenger is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Marssenger Kitchenware
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.02 times more return on investment than Marssenger Kitchenware. However, Zhejiang Yayi is 1.02 times more volatile than Marssenger Kitchenware Co. It trades about 0.01 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.03 per unit of risk. If you would invest 2,702 in Zhejiang Yayi Metal on September 28, 2024 and sell it today you would lose (282.00) from holding Zhejiang Yayi Metal or give up 10.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Marssenger Kitchenware |
Zhejiang Yayi and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Marssenger Kitchenware
The main advantage of trading using opposite Zhejiang Yayi and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Bank of China | Zhejiang Yayi vs. China Construction Bank |
| Marssenger Kitchenware vs. Agricultural Bank of | Marssenger Kitchenware vs. Industrial and Commercial | Marssenger Kitchenware vs. Bank of China | Marssenger Kitchenware vs. China Construction Bank |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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