Correlation Between Gem Year and Ye Chiu
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By analyzing existing cross correlation between Gem Year Industrial Co and Ye Chiu Metal, you can compare the effects of market volatilities on Gem Year and Ye Chiu 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 Gem Year with a short position of Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Ye Chiu.
Diversification Opportunities for Gem Year and Ye Chiu
Weak diversification
The 3 months correlation between Gem and 601388 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Gem Year i.e., Gem Year and Ye Chiu go up and down completely randomly.
Pair Corralation between Gem Year and Ye Chiu
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.59 times more return on investment than Ye Chiu. However, Gem Year is 1.59 times more volatile than Ye Chiu Metal. It trades about 0.23 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.15 per unit of risk. If you would invest 421.00 in Gem Year Industrial Co on December 11, 2024 and sell it today you would earn a total of 91.00 from holding Gem Year Industrial Co or generate 21.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Ye Chiu Metal
Performance |
| Timeline |
| Gem Year Industrial |
| Ye Chiu Metal |
Gem Year and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Ye Chiu
The main advantage of trading using opposite Gem Year and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Gem Year vs. Offshore Oil Engineering | Gem Year vs. Fujian Newland Computer | Gem Year vs. Zhejiang Yinlun Machinery | Gem Year vs. Citic Offshore Helicopter |
| Ye Chiu vs. XinJiang GuoTong Pipeline | Ye Chiu vs. China Everbright Bank | Ye Chiu vs. HeNan Splendor Science | Ye Chiu vs. Vats Liquor Chain |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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