Correlation Between Shaanxi Broadcast and Zhejiang Yinlun
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Shaanxi Broadcast and Zhejiang Yinlun 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 Shaanxi Broadcast with a short position of Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Zhejiang Yinlun.
Diversification Opportunities for Shaanxi Broadcast and Zhejiang Yinlun
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery and Shaanxi Broadcast 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 Shaanxi Broadcast TV are associated (or correlated) with Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Zhejiang Yinlun
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to under-perform the Zhejiang Yinlun. In addition to that, Shaanxi Broadcast is 1.15 times more volatile than Zhejiang Yinlun Machinery. It trades about -0.04 of its total potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about 0.04 per unit of volatility. If you would invest 1,370 in Zhejiang Yinlun Machinery on August 25, 2024 and sell it today you would earn a total of 473.00 from holding Zhejiang Yinlun Machinery or generate 34.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Shaanxi Broadcast |
| Zhejiang Yinlun Machinery |
Shaanxi Broadcast and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and Zhejiang Yinlun
The main advantage of trading using opposite Shaanxi Broadcast and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, Zhejiang Yinlun 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 Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| Shaanxi Broadcast vs. Rising Nonferrous Metals | Shaanxi Broadcast vs. Western Metal Materials | Shaanxi Broadcast vs. Ningbo Construction Co | Shaanxi Broadcast vs. Lutian Machinery Co |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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