Correlation Between Ziel Home and Zhejiang Yongjin
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By analyzing existing cross correlation between Ziel Home Furnishing and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Ziel Home and Zhejiang Yongjin 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 Ziel Home with a short position of Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Zhejiang Yongjin.
Diversification Opportunities for Ziel Home and Zhejiang Yongjin
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ziel and Zhejiang is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal and Ziel Home 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 Ziel Home Furnishing are associated (or correlated) with Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of Ziel Home i.e., Ziel Home and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Ziel Home and Zhejiang Yongjin
Assuming the 90 days trading horizon Ziel Home Furnishing is expected to generate 1.5 times more return on investment than Zhejiang Yongjin. However, Ziel Home is 1.5 times more volatile than Zhejiang Yongjin Metal. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.03 per unit of risk. If you would invest 2,466 in Ziel Home Furnishing on October 27, 2024 and sell it today you would lose (503.00) from holding Ziel Home Furnishing or give up 20.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.12% |
| Values | Daily Returns |
Ziel Home Furnishing vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Ziel Home Furnishing |
| Zhejiang Yongjin Metal |
Ziel Home and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and Zhejiang Yongjin
The main advantage of trading using opposite Ziel Home and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| Ziel Home vs. China Aluminum International | Ziel Home vs. Weihai Honglin Electronic | Ziel Home vs. Ye Chiu Metal | Ziel Home vs. Zhonghang Electronic Measuring |
| Zhejiang Yongjin vs. Zijin Mining Group | Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Shandong Gold Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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