Correlation Between Ye Chiu and Longmaster Information
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By analyzing existing cross correlation between Ye Chiu Metal and Longmaster Information Tech, you can compare the effects of market volatilities on Ye Chiu and Longmaster Information 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 Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Longmaster Information.
Diversification Opportunities for Ye Chiu and Longmaster Information
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and Longmaster is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information 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 Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Ye Chiu i.e., Ye Chiu and Longmaster Information go up and down completely randomly.
Pair Corralation between Ye Chiu and Longmaster Information
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.68 times more return on investment than Longmaster Information. However, Ye Chiu Metal is 1.47 times less risky than Longmaster Information. It trades about -0.32 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about -0.27 per unit of risk. If you would invest 277.00 in Ye Chiu Metal on October 21, 2024 and sell it today you would lose (37.00) from holding Ye Chiu Metal or give up 13.36% 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. Longmaster Information Tech
Performance |
| Timeline |
| Ye Chiu Metal |
| Longmaster Information |
Ye Chiu and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Longmaster Information
The main advantage of trading using opposite Ye Chiu and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.| Ye Chiu vs. Anji Foodstuff Co | Ye Chiu vs. ROPEOK Technology Group | Ye Chiu vs. Tianjin Ruixin Technology | Ye Chiu vs. HaiXin Foods Co |
| Longmaster Information vs. Xinjiang Baodi Mining | Longmaster Information vs. Ye Chiu Metal | Longmaster Information vs. Shengda Mining Co | Longmaster Information 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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