Correlation Between Zhejiang Yayi and Ningxia Building
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Ningxia Building Materials, you can compare the effects of market volatilities on Zhejiang Yayi and Ningxia Building 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 Ningxia Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Ningxia Building.
Diversification Opportunities for Zhejiang Yayi and Ningxia Building
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Ningxia is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Ningxia Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Building Mat 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 Ningxia Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Building Mat has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Ningxia Building go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Ningxia Building
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 0.98 times more return on investment than Ningxia Building. However, Zhejiang Yayi Metal is 1.02 times less risky than Ningxia Building. It trades about 0.18 of its potential returns per unit of risk. Ningxia Building Materials is currently generating about 0.16 per unit of risk. If you would invest 2,450 in Zhejiang Yayi Metal on September 3, 2024 and sell it today you would earn a total of 223.00 from holding Zhejiang Yayi Metal or generate 9.1% 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. Ningxia Building Materials
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Ningxia Building Mat |
Zhejiang Yayi and Ningxia Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Ningxia Building
The main advantage of trading using opposite Zhejiang Yayi and Ningxia Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Ningxia Building 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 Ningxia Building will offset losses from the drop in Ningxia Building'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 |
| Ningxia Building vs. Zijin Mining Group | Ningxia Building vs. Baoshan Iron Steel | Ningxia Building vs. Rongsheng Petrochemical Co | Ningxia Building vs. Hoshine Silicon Ind |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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