Correlation Between Ye Chiu and Xinjiang Zhongtai
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By analyzing existing cross correlation between Ye Chiu Metal and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Ye Chiu and Xinjiang Zhongtai 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 Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Xinjiang Zhongtai.
Diversification Opportunities for Ye Chiu and Xinjiang Zhongtai
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 601388 and Xinjiang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai 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 Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Ye Chiu i.e., Ye Chiu and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Ye Chiu and Xinjiang Zhongtai
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.11 times more return on investment than Xinjiang Zhongtai. However, Ye Chiu is 1.11 times more volatile than Xinjiang Zhongtai Chemical. It trades about 0.16 of its potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about 0.16 per unit of risk. If you would invest 276.00 in Ye Chiu Metal on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Ye Chiu Metal or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Ye Chiu Metal |
| Xinjiang Zhongtai |
Ye Chiu and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Xinjiang Zhongtai
The main advantage of trading using opposite Ye Chiu and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Xinjiang Zhongtai 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 Xinjiang Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
| Xinjiang Zhongtai vs. Linewell Software Co | Xinjiang Zhongtai vs. Hainan Mining Co | Xinjiang Zhongtai vs. Chenzhou Jingui Silver | Xinjiang Zhongtai vs. Fujian Rongji Software |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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