Correlation Between Shanghai Material and Zhejiang Yayi
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By analyzing existing cross correlation between Shanghai Material Trading and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Shanghai 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 Shanghai Material with a short position of Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and Zhejiang Yayi.
Diversification Opportunities for Shanghai Material and Zhejiang Yayi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading 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 Shanghai 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 Shanghai Material Trading 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 Shanghai Material i.e., Shanghai Material and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Shanghai Material and Zhejiang Yayi
Assuming the 90 days trading horizon Shanghai Material Trading is expected to generate 0.96 times more return on investment than Zhejiang Yayi. However, Shanghai Material Trading is 1.05 times less risky than Zhejiang Yayi. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.0 per unit of risk. If you would invest 1,195 in Shanghai Material Trading on September 2, 2024 and sell it today you would earn a total of 38.00 from holding Shanghai Material Trading or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Material Trading vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Shanghai Material Trading |
| Zhejiang Yayi Metal |
Shanghai Material and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Material and Zhejiang Yayi
The main advantage of trading using opposite Shanghai Material and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai 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.| Shanghai Material vs. Ming Yang Smart | Shanghai Material vs. 159681 | Shanghai Material vs. 159005 | Shanghai Material vs. Loctek Ergonomic Technology |
| Zhejiang Yayi vs. Zoje Resources Investment | Zhejiang Yayi vs. Luyin Investment Group | Zhejiang Yayi vs. Hefei Metalforming Mach | Zhejiang Yayi vs. Shanghai Material Trading |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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