Correlation Between Ye Chiu and Lianhe Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ye Chiu Metal and Lianhe Chemical Technology, you can compare the effects of market volatilities on Ye Chiu and Lianhe Chemical 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 Lianhe Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Lianhe Chemical.
Diversification Opportunities for Ye Chiu and Lianhe Chemical
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Lianhe is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Lianhe Chemical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lianhe Chemical Tech 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 Lianhe Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lianhe Chemical Tech has no effect on the direction of Ye Chiu i.e., Ye Chiu and Lianhe Chemical go up and down completely randomly.
Pair Corralation between Ye Chiu and Lianhe Chemical
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.02 times more return on investment than Lianhe Chemical. However, Ye Chiu is 1.02 times more volatile than Lianhe Chemical Technology. It trades about 0.04 of its potential returns per unit of risk. Lianhe Chemical Technology is currently generating about 0.04 per unit of risk. If you would invest 245.00 in Ye Chiu Metal on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Ye Chiu Metal or generate 8.16% 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. Lianhe Chemical Technology
Performance |
| Timeline |
| Ye Chiu Metal |
| Lianhe Chemical Tech |
Ye Chiu and Lianhe Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Lianhe Chemical
The main advantage of trading using opposite Ye Chiu and Lianhe Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Lianhe Chemical 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 Lianhe Chemical will offset losses from the drop in Lianhe Chemical'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 |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |