Correlation Between Hunan Tyen and Zhejiang Yongjin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hunan Tyen Machinery and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Hunan Tyen 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 Hunan Tyen with a short position of Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Zhejiang Yongjin.
Diversification Opportunities for Hunan Tyen and Zhejiang Yongjin
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Zhejiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery 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 Hunan Tyen 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 Hunan Tyen Machinery 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 Hunan Tyen i.e., Hunan Tyen and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Hunan Tyen and Zhejiang Yongjin
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 1.54 times more return on investment than Zhejiang Yongjin. However, Hunan Tyen is 1.54 times more volatile than Zhejiang Yongjin Metal. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.01 per unit of risk. If you would invest 436.00 in Hunan Tyen Machinery on August 25, 2024 and sell it today you would earn a total of 74.00 from holding Hunan Tyen Machinery or generate 16.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Zhejiang Yongjin Metal |
Hunan Tyen and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Zhejiang Yongjin
The main advantage of trading using opposite Hunan Tyen and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen 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.| Hunan Tyen vs. Kweichow Moutai Co | Hunan Tyen vs. Contemporary Amperex Technology | Hunan Tyen vs. G bits Network Technology | Hunan Tyen vs. Beijing Roborock Technology |
| Zhejiang Yongjin vs. Xinjiang Beixin RoadBridge | Zhejiang Yongjin vs. RoadMain T Co | Zhejiang Yongjin vs. Longjian Road Bridge | Zhejiang Yongjin vs. Sinocat Environmental Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |