Correlation Between Zhejiang Yayi and DR
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By analyzing existing cross correlation between Zhejiang Yayi Metal and DR Limited, you can compare the effects of market volatilities on Zhejiang Yayi and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and DR.
Diversification Opportunities for Zhejiang Yayi and DR
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and DR is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and DR go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and DR
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.2 times more return on investment than DR. However, Zhejiang Yayi is 1.2 times more volatile than DR Limited. It trades about 0.01 of its potential returns per unit of risk. DR Limited is currently generating about -0.01 per unit of risk. If you would invest 3,396 in Zhejiang Yayi Metal on September 14, 2024 and sell it today you would lose (429.00) from holding Zhejiang Yayi Metal or give up 12.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. DR Limited
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| DR Limited |
Zhejiang Yayi and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and DR
The main advantage of trading using opposite Zhejiang Yayi and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, DR 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 DR will offset losses from the drop in DR's long position.| Zhejiang Yayi vs. Lutian Machinery Co | Zhejiang Yayi vs. China Longyuan Power | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. Bank of China |
| DR vs. Cultural Investment Holdings | DR vs. Jiangsu Yueda Investment | DR vs. CITIC Metal Co | DR vs. Zhejiang Yayi Metal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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