Correlation Between Ye Chiu and Tongling Nonferrous
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By analyzing existing cross correlation between Ye Chiu Metal and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Ye Chiu and Tongling Nonferrous 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 Ye Chiu with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Tongling Nonferrous.
Diversification Opportunities for Ye Chiu and Tongling Nonferrous
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and Tongling is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Ye Chiu i.e., Ye Chiu and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Ye Chiu and Tongling Nonferrous
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.5 times more return on investment than Tongling Nonferrous. However, Ye Chiu is 1.5 times more volatile than Tongling Nonferrous Metals. It trades about 0.23 of its potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.01 per unit of risk. If you would invest 236.00 in Ye Chiu Metal on November 29, 2024 and sell it today you would earn a total of 15.00 from holding Ye Chiu Metal or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Ye Chiu Metal |
| Tongling Nonferrous |
Ye Chiu and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Tongling Nonferrous
The main advantage of trading using opposite Ye Chiu and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Ye Chiu vs. Beijing Mainstreets Investment | Ye Chiu vs. Harbin Hatou Investment | Ye Chiu vs. Shenzhen Urban Transport | Ye Chiu vs. Postal Savings Bank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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