Correlation Between Jiangsu Yueda and Zoje Resources
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Zoje Resources Investment, you can compare the effects of market volatilities on Jiangsu Yueda and Zoje Resources 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 Jiangsu Yueda with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Zoje Resources.
Diversification Opportunities for Jiangsu Yueda and Zoje Resources
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Zoje is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Zoje Resources go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Zoje Resources
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 4.93 times less return on investment than Zoje Resources. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 1.32 times less risky than Zoje Resources. It trades about 0.03 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Zoje Resources Investment on September 12, 2024 and sell it today you would earn a total of 201.00 from holding Zoje Resources Investment or generate 162.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Zoje Resources Investment
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Zoje Resources Investment |
Jiangsu Yueda and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Zoje Resources
The main advantage of trading using opposite Jiangsu Yueda and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Jiangsu Yueda vs. Agricultural Bank of | Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. Bank of China | Jiangsu Yueda vs. PetroChina Co Ltd |
| Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Bank of China | Zoje Resources vs. PetroChina Co Ltd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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