Correlation Between Zhejiang Yayi and Long Yuan
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Long Yuan Construction, you can compare the effects of market volatilities on Zhejiang Yayi and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Long Yuan.
Diversification Opportunities for Zhejiang Yayi and Long Yuan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Long is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Long Yuan go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Long Yuan
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.07 times more return on investment than Long Yuan. However, Zhejiang Yayi is 1.07 times more volatile than Long Yuan Construction. It trades about -0.07 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.26 per unit of risk. If you would invest 2,439 in Zhejiang Yayi Metal on October 22, 2024 and sell it today you would lose (96.00) from holding Zhejiang Yayi Metal or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Long Yuan Construction
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Long Yuan Construction |
Zhejiang Yayi and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Long Yuan
The main advantage of trading using opposite Zhejiang Yayi and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Zhejiang Yayi vs. Nanjing Canatal Data | Zhejiang Yayi vs. Shenzhen Topway Video | Zhejiang Yayi vs. Haima Automobile Group | Zhejiang Yayi vs. Invengo Information Technology |
| Long Yuan vs. Guangzhou KingTeller Technology | Long Yuan vs. Luyin Investment Group | Long Yuan vs. Jiujiang Shanshui Technology | Long Yuan vs. HanS Laser Tech |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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