Correlation Between Zhejiang Yayi and Xinhua Winshare
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Zhejiang Yayi and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Xinhua Winshare.
Diversification Opportunities for Zhejiang Yayi and Xinhua Winshare
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Xinhua is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Xinhua Winshare
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.47 times more return on investment than Xinhua Winshare. However, Zhejiang Yayi is 1.47 times more volatile than Xinhua Winshare Publishing. It trades about -0.01 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.21 per unit of risk. If you would invest 2,572 in Zhejiang Yayi Metal on August 29, 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 Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Xinhua Winshare Publ |
Zhejiang Yayi and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Xinhua Winshare
The main advantage of trading using opposite Zhejiang Yayi and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Zhejiang Yayi vs. China Sports Industry | Zhejiang Yayi vs. New Hope Dairy | Zhejiang Yayi vs. Sportsoul Co Ltd | Zhejiang Yayi vs. Sichuan Teway Food |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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