Correlation Between Inner Mongolia and Ye Chiu
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Ye Chiu Metal, you can compare the effects of market volatilities on Inner Mongolia and Ye Chiu 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 Inner Mongolia with a short position of Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Ye Chiu.
Diversification Opportunities for Inner Mongolia and Ye Chiu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and 601388 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal and Inner Mongolia 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 Inner Mongolia BaoTou are associated (or correlated) with Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Ye Chiu go up and down completely randomly.
Pair Corralation between Inner Mongolia and Ye Chiu
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 2.06 times more return on investment than Ye Chiu. However, Inner Mongolia is 2.06 times more volatile than Ye Chiu Metal. It trades about 0.15 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.02 per unit of risk. If you would invest 171.00 in Inner Mongolia BaoTou on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Inner Mongolia BaoTou or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Ye Chiu Metal
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Ye Chiu Metal |
Inner Mongolia and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Ye Chiu
The main advantage of trading using opposite Inner Mongolia and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Inner Mongolia vs. Beijing Jiaman Dress | Inner Mongolia vs. Puyang Huicheng Electronic | Inner Mongolia vs. TongFu Microelectronics Co | Inner Mongolia vs. Ningbo Kangqiang Electronics |
| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu 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 Stocks Directory module to find actively traded stocks across global markets.
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