Correlation Between Zhengzhou Yutong and Ye Chiu
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By analyzing existing cross correlation between Zhengzhou Yutong Bus and Ye Chiu Metal, you can compare the effects of market volatilities on Zhengzhou Yutong 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 Zhengzhou Yutong with a short position of Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Yutong and Ye Chiu.
Diversification Opportunities for Zhengzhou Yutong and Ye Chiu
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhengzhou and 601388 is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Yutong Bus 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 Zhengzhou Yutong 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 Zhengzhou Yutong Bus 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 Zhengzhou Yutong i.e., Zhengzhou Yutong and Ye Chiu go up and down completely randomly.
Pair Corralation between Zhengzhou Yutong and Ye Chiu
Assuming the 90 days trading horizon Zhengzhou Yutong Bus is expected to generate 0.98 times more return on investment than Ye Chiu. However, Zhengzhou Yutong Bus is 1.02 times less risky than Ye Chiu. It trades about 0.12 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.0 per unit of risk. If you would invest 708.00 in Zhengzhou Yutong Bus on September 12, 2024 and sell it today you would earn a total of 1,687 from holding Zhengzhou Yutong Bus or generate 238.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Zhengzhou Yutong Bus vs. Ye Chiu Metal
Performance |
| Timeline |
| Zhengzhou Yutong Bus |
| Ye Chiu Metal |
Zhengzhou Yutong and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Yutong and Ye Chiu
The main advantage of trading using opposite Zhengzhou Yutong and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Yutong 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.| Zhengzhou Yutong vs. Ye Chiu Metal | Zhengzhou Yutong vs. Sinomach Automobile Co | Zhengzhou Yutong vs. Chengtun Mining Group | Zhengzhou Yutong vs. Lonkey Industrial Co |
| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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