Correlation Between Zhejiang Yayi and Ming Yang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Yayi Metal and Ming Yang Smart, you can compare the effects of market volatilities on Zhejiang Yayi and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Ming Yang.
Diversification Opportunities for Zhejiang Yayi and Ming Yang
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Ming is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Ming Yang go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Ming Yang
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.16 times more return on investment than Ming Yang. However, Zhejiang Yayi is 1.16 times more volatile than Ming Yang Smart. It trades about -0.19 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.3 per unit of risk. If you would invest 2,647 in Zhejiang Yayi Metal on October 21, 2024 and sell it today you would lose (304.00) from holding Zhejiang Yayi Metal or give up 11.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Ming Yang Smart
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Ming Yang Smart |
Zhejiang Yayi and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Ming Yang
The main advantage of trading using opposite Zhejiang Yayi and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Zhejiang Yayi vs. Kweichow Moutai Co | Zhejiang Yayi vs. Contemporary Amperex Technology | Zhejiang Yayi vs. G bits Network Technology | Zhejiang Yayi vs. BYD Co Ltd |
| Ming Yang vs. Hangzhou Gisway Information | Ming Yang vs. Air China Ltd | Ming Yang vs. Dymatic Chemicals | Ming Yang vs. Shenzhen Noposion Agrochemicals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |