Correlation Between Ye Chiu and Central China
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By analyzing existing cross correlation between Ye Chiu Metal and Central China Land, you can compare the effects of market volatilities on Ye Chiu and Central China 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 Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Central China.
Diversification Opportunities for Ye Chiu and Central China
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and Central is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land 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 Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Ye Chiu i.e., Ye Chiu and Central China go up and down completely randomly.
Pair Corralation between Ye Chiu and Central China
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.31 times more return on investment than Central China. However, Ye Chiu is 1.31 times more volatile than Central China Land. It trades about 0.16 of its potential returns per unit of risk. Central China Land is currently generating about -0.2 per unit of risk. If you would invest 234.00 in Ye Chiu Metal on November 28, 2024 and sell it today you would earn a total of 9.00 from holding Ye Chiu Metal or generate 3.85% 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. Central China Land
Performance |
| Timeline |
| Ye Chiu Metal |
| Central China Land |
Ye Chiu and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Central China
The main advantage of trading using opposite Ye Chiu and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Ye Chiu vs. Jiangsu Jinling Sports | Ye Chiu vs. Shanghai Jinfeng Wine | Ye Chiu vs. Dareway Software Co | Ye Chiu vs. Caihong Display Devices |
| Central China vs. Suzhou Douson Drilling | Central China vs. Eastroc Beverage Group | Central China vs. Sinomach Automobile Co | Central China vs. Shuhua Sports Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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