Correlation Between Hua Xia and Zhejiang Yongjin
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By analyzing existing cross correlation between Hua Xia Bank and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Hua Xia 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 Hua Xia with a short position of Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Zhejiang Yongjin.
Diversification Opportunities for Hua Xia and Zhejiang Yongjin
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hua and Zhejiang is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank 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 Hua Xia 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 Hua Xia Bank 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 Hua Xia i.e., Hua Xia and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Hua Xia and Zhejiang Yongjin
Assuming the 90 days trading horizon Hua Xia Bank is expected to under-perform the Zhejiang Yongjin. But the stock apears to be less risky and, when comparing its historical volatility, Hua Xia Bank is 1.32 times less risky than Zhejiang Yongjin. The stock trades about -0.19 of its potential returns per unit of risk. The Zhejiang Yongjin Metal is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,829 in Zhejiang Yongjin Metal on November 1, 2024 and sell it today you would earn a total of 186.00 from holding Zhejiang Yongjin Metal or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Hua Xia Bank |
| Zhejiang Yongjin Metal |
Hua Xia and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Zhejiang Yongjin
The main advantage of trading using opposite Hua Xia and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia 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.| Hua Xia vs. Xiandai Investment Co | Hua Xia vs. Guangzhou Ruoyuchen Information | Hua Xia vs. Shenzhen Topway Video | Hua Xia vs. Shaanxi Energy Investment |
| Zhejiang Yongjin vs. Hainan Mining Co | Zhejiang Yongjin vs. Fangda Special Steel | Zhejiang Yongjin vs. Lingyuan Iron Steel | Zhejiang Yongjin vs. Tibet Huayu 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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