Correlation Between Ye Chiu and Zhongzhu Medical
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By analyzing existing cross correlation between Ye Chiu Metal and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Ye Chiu and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Zhongzhu Medical.
Diversification Opportunities for Ye Chiu and Zhongzhu Medical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and Zhongzhu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Ye Chiu i.e., Ye Chiu and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Ye Chiu and Zhongzhu Medical
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.19 times more return on investment than Zhongzhu Medical. However, Ye Chiu is 1.19 times more volatile than Zhongzhu Medical Holdings. It trades about 0.07 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about 0.04 per unit of risk. If you would invest 206.00 in Ye Chiu Metal on October 18, 2024 and sell it today you would earn a total of 29.00 from holding Ye Chiu Metal or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Ye Chiu Metal |
| Zhongzhu Medical Holdings |
Ye Chiu and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Zhongzhu Medical
The main advantage of trading using opposite Ye Chiu and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Ye Chiu vs. Holitech Technology Co | Ye Chiu vs. Digiwin Software Co | Ye Chiu vs. Cabio Biotech Wuhan | Ye Chiu vs. Hengkang Medical Group |
| Zhongzhu Medical vs. Ningbo Jintian Copper | Zhongzhu Medical vs. Jinling Hotel Corp | Zhongzhu Medical vs. Sino Platinum Metals Co | Zhongzhu Medical vs. Ye Chiu Metal |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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