Correlation Between Baoshan Iron and Zhejiang Yongjin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Baoshan Iron 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 Baoshan Iron with a short position of Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Zhejiang Yongjin.
Diversification Opportunities for Baoshan Iron and Zhejiang Yongjin
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baoshan and Zhejiang is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel 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 Baoshan Iron 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 Baoshan Iron Steel 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 Baoshan Iron i.e., Baoshan Iron and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Baoshan Iron and Zhejiang Yongjin
Assuming the 90 days trading horizon Baoshan Iron is expected to generate 5.41 times less return on investment than Zhejiang Yongjin. In addition to that, Baoshan Iron is 1.01 times more volatile than Zhejiang Yongjin Metal. It trades about 0.07 of its total potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about 0.37 per unit of volatility. If you would invest 1,800 in Zhejiang Yongjin Metal on November 4, 2024 and sell it today you would earn a total of 215.00 from holding Zhejiang Yongjin Metal or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Baoshan Iron Steel |
| Zhejiang Yongjin Metal |
Baoshan Iron and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Zhejiang Yongjin
The main advantage of trading using opposite Baoshan Iron and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron 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.| Baoshan Iron vs. Senci Electric Machinery | Baoshan Iron vs. Allied Machinery Co | Baoshan Iron vs. Anhui Huaren Health | Baoshan Iron vs. Lotus Health Group |
| Zhejiang Yongjin vs. Montage Technology Co | Zhejiang Yongjin vs. Jinyu Bio Technology Co | Zhejiang Yongjin vs. Kunshan Dongwei Technology | Zhejiang Yongjin vs. Shanghai Ziyan Foods |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |