Correlation Between Zhejiang Yayi and Jonjee Hi
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Zhejiang Yayi and Jonjee Hi 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 Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Jonjee Hi.
Diversification Opportunities for Zhejiang Yayi and Jonjee Hi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Jonjee is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Jonjee Hi go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Jonjee Hi
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.12 times more return on investment than Jonjee Hi. However, Zhejiang Yayi is 1.12 times more volatile than Jonjee Hi tech Industrial. It trades about -0.01 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.16 per unit of risk. If you would invest 2,572 in Zhejiang Yayi Metal on August 28, 2024 and sell it today you would lose (28.00) from holding Zhejiang Yayi Metal or give up 1.09% 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. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Jonjee Hi tech |
Zhejiang Yayi and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Jonjee Hi
The main advantage of trading using opposite Zhejiang Yayi and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Zhejiang Yayi vs. Chongqing Brewery Co | Zhejiang Yayi vs. Guangzhou Zhujiang Brewery | Zhejiang Yayi vs. Beijing Yanjing Brewery | Zhejiang Yayi vs. Jilin Jlu Communication |
| Jonjee Hi vs. China Petroleum Chemical | Jonjee Hi vs. PetroChina Co Ltd | Jonjee Hi vs. China State Construction | Jonjee Hi vs. China Railway Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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