Correlation Between Zhejiang Yayi and Xiangcai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Yayi Metal and Xiangcai Co, you can compare the effects of market volatilities on Zhejiang Yayi and Xiangcai 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 Xiangcai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Xiangcai.
Diversification Opportunities for Zhejiang Yayi and Xiangcai
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Xiangcai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Xiangcai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangcai 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 Xiangcai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangcai has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Xiangcai go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Xiangcai
Assuming the 90 days trading horizon Zhejiang Yayi is expected to generate 1.81 times less return on investment than Xiangcai. In addition to that, Zhejiang Yayi is 1.57 times more volatile than Xiangcai Co. It trades about 0.0 of its total potential returns per unit of risk. Xiangcai Co is currently generating about 0.01 per unit of volatility. If you would invest 792.00 in Xiangcai Co on September 4, 2024 and sell it today you would lose (1.00) from holding Xiangcai Co or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Xiangcai Co
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Xiangcai |
Zhejiang Yayi and Xiangcai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Xiangcai
The main advantage of trading using opposite Zhejiang Yayi and Xiangcai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Xiangcai 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 Xiangcai will offset losses from the drop in Xiangcai's long position.| Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. China Construction Bank | Zhejiang Yayi vs. Bank of China |
| Xiangcai vs. Ningbo Thermal Power | Xiangcai vs. Guocheng Mining Co | Xiangcai vs. Zhejiang Yayi Metal | Xiangcai vs. Beijing HuaYuanYiTong Thermal |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |