Correlation Between Zhejiang Yayi and Huitong Construction
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Huitong Construction Group, you can compare the effects of market volatilities on Zhejiang Yayi and Huitong Construction 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 Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Huitong Construction.
Diversification Opportunities for Zhejiang Yayi and Huitong Construction
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Huitong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong 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 Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Huitong Construction go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Huitong Construction
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to under-perform the Huitong Construction. In addition to that, Zhejiang Yayi is 1.18 times more volatile than Huitong Construction Group. It trades about -0.01 of its total potential returns per unit of risk. Huitong Construction Group is currently generating about 0.05 per unit of volatility. If you would invest 499.00 in Huitong Construction Group on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Huitong Construction Group or generate 2.0% 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. Huitong Construction Group
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Huitong Construction |
Zhejiang Yayi and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Huitong Construction
The main advantage of trading using opposite Zhejiang Yayi and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Huitong Construction 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 Huitong Construction will offset losses from the drop in Huitong Construction'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 |
| Huitong Construction vs. Ming Yang Smart | Huitong Construction vs. 159681 | Huitong Construction vs. 159005 | Huitong Construction vs. Loctek Ergonomic Technology |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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