Correlation Between Ye Chiu and Xiandai Investment
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By analyzing existing cross correlation between Ye Chiu Metal and Xiandai Investment Co, you can compare the effects of market volatilities on Ye Chiu and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Xiandai Investment.
Diversification Opportunities for Ye Chiu and Xiandai Investment
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and Xiandai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Ye Chiu i.e., Ye Chiu and Xiandai Investment go up and down completely randomly.
Pair Corralation between Ye Chiu and Xiandai Investment
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the Xiandai Investment. In addition to that, Ye Chiu is 1.16 times more volatile than Xiandai Investment Co. It trades about -0.01 of its total potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.02 per unit of volatility. If you would invest 405.00 in Xiandai Investment Co on October 15, 2024 and sell it today you would earn a total of 6.00 from holding Xiandai Investment Co or generate 1.48% 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. Xiandai Investment Co
Performance |
| Timeline |
| Ye Chiu Metal |
| Xiandai Investment |
Ye Chiu and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Xiandai Investment
The main advantage of trading using opposite Ye Chiu and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Ye Chiu vs. Long Yuan Construction | Ye Chiu vs. Allied Machinery Co | Ye Chiu vs. Eyebright Medical Technology | Ye Chiu vs. Masterwork Machinery |
| Xiandai Investment vs. Bingo Software Co | Xiandai Investment vs. China Publishing Media | Xiandai Investment vs. Shanghai Newtouch Software | Xiandai Investment vs. Guangzhou Jinyi Media |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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