Correlation Between Ye Chiu and Zhongtai Securities
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By analyzing existing cross correlation between Ye Chiu Metal and Zhongtai Securities Co, you can compare the effects of market volatilities on Ye Chiu and Zhongtai Securities 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 Zhongtai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Zhongtai Securities.
Diversification Opportunities for Ye Chiu and Zhongtai Securities
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and Zhongtai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Zhongtai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtai Securities 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 Zhongtai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtai Securities has no effect on the direction of Ye Chiu i.e., Ye Chiu and Zhongtai Securities go up and down completely randomly.
Pair Corralation between Ye Chiu and Zhongtai Securities
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the Zhongtai Securities. In addition to that, Ye Chiu is 1.41 times more volatile than Zhongtai Securities Co. It trades about -0.03 of its total potential returns per unit of risk. Zhongtai Securities Co is currently generating about -0.01 per unit of volatility. If you would invest 704.00 in Zhongtai Securities Co on October 25, 2024 and sell it today you would lose (81.00) from holding Zhongtai Securities Co or give up 11.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ye Chiu Metal vs. Zhongtai Securities Co
Performance |
| Timeline |
| Ye Chiu Metal |
| Zhongtai Securities |
Ye Chiu and Zhongtai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Zhongtai Securities
The main advantage of trading using opposite Ye Chiu and Zhongtai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Zhongtai Securities 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 Zhongtai Securities will offset losses from the drop in Zhongtai Securities' 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 |
| Zhongtai Securities vs. De Rucci Healthy | Zhongtai Securities vs. Lotus Health Group | Zhongtai Securities vs. Andon Health Co | Zhongtai Securities vs. Shenzhen Centralcon Investment |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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