Correlation Between Ye Chiu and Nanjing Yunhai
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By analyzing existing cross correlation between Ye Chiu Metal and Nanjing Yunhai Special, you can compare the effects of market volatilities on Ye Chiu and Nanjing Yunhai 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 Nanjing Yunhai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Nanjing Yunhai.
Diversification Opportunities for Ye Chiu and Nanjing Yunhai
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and Nanjing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Nanjing Yunhai Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Yunhai Special 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 Nanjing Yunhai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Yunhai Special has no effect on the direction of Ye Chiu i.e., Ye Chiu and Nanjing Yunhai go up and down completely randomly.
Pair Corralation between Ye Chiu and Nanjing Yunhai
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.96 times more return on investment than Nanjing Yunhai. However, Ye Chiu Metal is 1.04 times less risky than Nanjing Yunhai. It trades about 0.01 of its potential returns per unit of risk. Nanjing Yunhai Special is currently generating about 0.0 per unit of risk. If you would invest 323.00 in Ye Chiu Metal on September 13, 2024 and sell it today you would lose (23.00) from holding Ye Chiu Metal or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Nanjing Yunhai Special
Performance |
| Timeline |
| Ye Chiu Metal |
| Nanjing Yunhai Special |
Ye Chiu and Nanjing Yunhai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Nanjing Yunhai
The main advantage of trading using opposite Ye Chiu and Nanjing Yunhai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Nanjing Yunhai 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 Nanjing Yunhai will offset losses from the drop in Nanjing Yunhai'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 |
| Nanjing Yunhai vs. Ye Chiu Metal | Nanjing Yunhai vs. Qingdao Choho Industrial | Nanjing Yunhai vs. Hainan Mining Co | Nanjing Yunhai vs. Chengtun Mining Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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