Correlation Between China Fund and Zhejiang Yongjin
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By analyzing existing cross correlation between China Fund Management and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on China Fund 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 China Fund with a short position of Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fund and Zhejiang Yongjin.
Diversification Opportunities for China Fund and Zhejiang Yongjin
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Zhejiang is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding China Fund Management 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 China Fund 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 China Fund Management 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 China Fund i.e., China Fund and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between China Fund and Zhejiang Yongjin
Assuming the 90 days trading horizon China Fund Management is expected to generate 0.1 times more return on investment than Zhejiang Yongjin. However, China Fund Management is 9.92 times less risky than Zhejiang Yongjin. It trades about 0.13 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.08 per unit of risk. If you would invest 1,000.00 in China Fund Management on August 25, 2024 and sell it today you would earn a total of 6.00 from holding China Fund Management or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Fund Management vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| China Fund Management |
| Zhejiang Yongjin Metal |
China Fund and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fund and Zhejiang Yongjin
The main advantage of trading using opposite China Fund and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fund 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.| China Fund vs. Industrial and Commercial | China Fund vs. Kweichow Moutai Co | China Fund vs. Agricultural Bank of | China Fund vs. China Mobile Limited |
| Zhejiang Yongjin vs. Zhejiang Yayi Metal | Zhejiang Yongjin vs. Ye Chiu Metal | Zhejiang Yongjin vs. Dalian Thermal Power | Zhejiang Yongjin vs. Lonkey Industrial Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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