Correlation Between Ye Chiu and Huayi Brothers
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By analyzing existing cross correlation between Ye Chiu Metal and Huayi Brothers Media, you can compare the effects of market volatilities on Ye Chiu and Huayi Brothers 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 Huayi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Huayi Brothers.
Diversification Opportunities for Ye Chiu and Huayi Brothers
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Huayi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Huayi Brothers Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huayi Brothers Media 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 Huayi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huayi Brothers Media has no effect on the direction of Ye Chiu i.e., Ye Chiu and Huayi Brothers go up and down completely randomly.
Pair Corralation between Ye Chiu and Huayi Brothers
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.74 times more return on investment than Huayi Brothers. However, Ye Chiu Metal is 1.34 times less risky than Huayi Brothers. It trades about -0.12 of its potential returns per unit of risk. Huayi Brothers Media is currently generating about -0.21 per unit of risk. If you would invest 265.00 in Ye Chiu Metal on October 30, 2024 and sell it today you would lose (31.00) from holding Ye Chiu Metal or give up 11.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Huayi Brothers Media
Performance |
| Timeline |
| Ye Chiu Metal |
| Huayi Brothers Media |
Ye Chiu and Huayi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Huayi Brothers
The main advantage of trading using opposite Ye Chiu and Huayi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Huayi Brothers 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 Huayi Brothers will offset losses from the drop in Huayi Brothers' long position.| Ye Chiu vs. Tianshan Aluminum Group | Ye Chiu vs. Suzhou Weizhixiang Food | Ye Chiu vs. Shanghai Yanpu Metal | Ye Chiu vs. CITIC Metal Co |
| Huayi Brothers vs. Shanghai Broadband Technology | Huayi Brothers vs. Chengdu Xinzhu RoadBridge | Huayi Brothers vs. Zhengping RoadBridge Constr | Huayi Brothers vs. Songz Automobile Air |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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