Correlation Between Ye Chiu and Sichuan Jinshi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ye Chiu Metal and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Ye Chiu and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Sichuan Jinshi.
Diversification Opportunities for Ye Chiu and Sichuan Jinshi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and Sichuan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Ye Chiu i.e., Ye Chiu and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Ye Chiu and Sichuan Jinshi
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.99 times more return on investment than Sichuan Jinshi. However, Ye Chiu Metal is 1.01 times less risky than Sichuan Jinshi. It trades about -0.02 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.02 per unit of risk. If you would invest 358.00 in Ye Chiu Metal on November 19, 2024 and sell it today you would lose (118.00) from holding Ye Chiu Metal or give up 32.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Ye Chiu Metal |
| Sichuan Jinshi Technology |
Ye Chiu and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Sichuan Jinshi
The main advantage of trading using opposite Ye Chiu and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Ye Chiu vs. Mega info Media CoLtd | Ye Chiu vs. Wintao Communications Co | Ye Chiu vs. China Mobile Limited | Ye Chiu vs. Chengdu B ray Media |
| Sichuan Jinshi vs. Ping An Insurance | Sichuan Jinshi vs. Winall Hi tech | Sichuan Jinshi vs. Allwin Telecommunication Co | Sichuan Jinshi vs. ChengDu Hi Tech Development |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |