Correlation Between Ye Chiu and Gem Year
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By analyzing existing cross correlation between Ye Chiu Metal and Gem Year Industrial Co, you can compare the effects of market volatilities on Ye Chiu and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Gem Year.
Diversification Opportunities for Ye Chiu and Gem Year
Very weak diversification
The 3 months correlation between 601388 and Gem is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Ye Chiu i.e., Ye Chiu and Gem Year go up and down completely randomly.
Pair Corralation between Ye Chiu and Gem Year
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the Gem Year. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.23 times less risky than Gem Year. The stock trades about -0.13 of its potential returns per unit of risk. The Gem Year Industrial Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 423.00 in Gem Year Industrial Co on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Gem Year Industrial Co or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Gem Year Industrial Co
Performance |
| Timeline |
| Ye Chiu Metal |
| Gem Year Industrial |
Ye Chiu and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Gem Year
The main advantage of trading using opposite Ye Chiu and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Ye Chiu vs. Keda Clean Energy | Ye Chiu vs. Citic Guoan Wine | Ye Chiu vs. Tsingtao Brewery Co | Ye Chiu vs. Tonghua Grape Wine |
| Gem Year vs. Guocheng Mining Co | Gem Year vs. Zhengzhou Coal Mining | Gem Year vs. Shenyang Blue Silver | Gem Year vs. Zhangjiagang Freetrade Science |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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