Correlation Between Yangmei Chemical and Zhejiang Daily
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By analyzing existing cross correlation between Yangmei Chemical Co and Zhejiang Daily Media, you can compare the effects of market volatilities on Yangmei Chemical and Zhejiang Daily 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 Yangmei Chemical with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Zhejiang Daily.
Diversification Opportunities for Yangmei Chemical and Zhejiang Daily
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yangmei and Zhejiang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media and Yangmei Chemical 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 Yangmei Chemical Co are associated (or correlated) with Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Yangmei Chemical i.e., Yangmei Chemical and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Zhejiang Daily
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to under-perform the Zhejiang Daily. But the stock apears to be less risky and, when comparing its historical volatility, Yangmei Chemical Co is 1.26 times less risky than Zhejiang Daily. The stock trades about -0.02 of its potential returns per unit of risk. The Zhejiang Daily Media is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 833.00 in Zhejiang Daily Media on October 7, 2024 and sell it today you would earn a total of 132.00 from holding Zhejiang Daily Media or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Zhejiang Daily Media
Performance |
| Timeline |
| Yangmei Chemical |
| Zhejiang Daily Media |
Yangmei Chemical and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Zhejiang Daily
The main advantage of trading using opposite Yangmei Chemical and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical position performs unexpectedly, Zhejiang Daily 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 Daily will offset losses from the drop in Zhejiang Daily's long position.| Yangmei Chemical vs. Zijin Mining Group | Yangmei Chemical vs. Wanhua Chemical Group | Yangmei Chemical vs. Baoshan Iron Steel | Yangmei Chemical vs. Rongsheng Petrochemical Co |
| Zhejiang Daily vs. China Life Insurance | Zhejiang Daily vs. Cinda Securities Co | Zhejiang Daily vs. Piotech Inc A | Zhejiang Daily vs. Dongxing Sec 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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