Correlation Between Ye Chiu and Guangzhou Zhujiang
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By analyzing existing cross correlation between Ye Chiu Metal and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Ye Chiu and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Guangzhou Zhujiang.
Diversification Opportunities for Ye Chiu and Guangzhou Zhujiang
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and Guangzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Ye Chiu i.e., Ye Chiu and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Ye Chiu and Guangzhou Zhujiang
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 2.02 times more return on investment than Guangzhou Zhujiang. However, Ye Chiu is 2.02 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about -0.01 per unit of risk. If you would invest 284.00 in Ye Chiu Metal on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Ye Chiu Metal or generate 0.0% 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. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Ye Chiu Metal |
| Guangzhou Zhujiang |
Ye Chiu and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Guangzhou Zhujiang
The main advantage of trading using opposite Ye Chiu and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co |
| Guangzhou Zhujiang vs. China Petroleum Chemical | Guangzhou Zhujiang vs. PetroChina Co Ltd | Guangzhou Zhujiang vs. China State Construction | Guangzhou Zhujiang vs. China Railway 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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