Correlation Between Ye Chiu and Western Metal
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By analyzing existing cross correlation between Ye Chiu Metal and Western Metal Materials, you can compare the effects of market volatilities on Ye Chiu and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Western Metal.
Diversification Opportunities for Ye Chiu and Western Metal
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Western is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Ye Chiu i.e., Ye Chiu and Western Metal go up and down completely randomly.
Pair Corralation between Ye Chiu and Western Metal
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the Western Metal. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.01 times less risky than Western Metal. The stock trades about -0.01 of its potential returns per unit of risk. The Western Metal Materials is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,470 in Western Metal Materials on August 29, 2024 and sell it today you would earn a total of 173.00 from holding Western Metal Materials or generate 11.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Western Metal Materials
Performance |
| Timeline |
| Ye Chiu Metal |
| Western Metal Materials |
Ye Chiu and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Western Metal
The main advantage of trading using opposite Ye Chiu and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Ye Chiu vs. Shandong Gold Mining | Ye Chiu vs. Rongsheng Petrochemical Co | Ye Chiu vs. Inner Mongolia BaoTou | Ye Chiu vs. Jiangxi Ganfeng Lithium |
| Western Metal vs. Shandong Gold Mining | Western Metal vs. Rongsheng Petrochemical Co | Western Metal vs. Inner Mongolia BaoTou | Western Metal vs. Jiangxi Ganfeng Lithium |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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