Correlation Between Xinke Material and Zhejiang Yayi
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By analyzing existing cross correlation between Xinke Material and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Xinke Material and Zhejiang Yayi 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 Xinke Material with a short position of Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Zhejiang Yayi.
Diversification Opportunities for Xinke Material and Zhejiang Yayi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinke and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal and Xinke Material 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 Xinke Material are associated (or correlated) with Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Xinke Material i.e., Xinke Material and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Xinke Material and Zhejiang Yayi
Assuming the 90 days trading horizon Xinke Material is expected to generate 0.73 times more return on investment than Zhejiang Yayi. However, Xinke Material is 1.37 times less risky than Zhejiang Yayi. It trades about 0.07 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.05 per unit of risk. If you would invest 193.00 in Xinke Material on September 3, 2024 and sell it today you would earn a total of 41.00 from holding Xinke Material or generate 21.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Xinke Material |
| Zhejiang Yayi Metal |
Xinke Material and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and Zhejiang Yayi
The main advantage of trading using opposite Xinke Material and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material position performs unexpectedly, Zhejiang Yayi 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 Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Xinke Material vs. Zijin Mining Group | Xinke Material vs. Baoshan Iron Steel | Xinke Material vs. Rongsheng Petrochemical Co | Xinke Material vs. Hoshine Silicon Ind |
| Zhejiang Yayi vs. Ningxia Building Materials | Zhejiang Yayi vs. Super Dragon Engineering Plastics | Zhejiang Yayi vs. Dawning Information Industry | Zhejiang Yayi vs. Xinke Material |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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