Correlation Between Ye Chiu and Dongxing Sec
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By analyzing existing cross correlation between Ye Chiu Metal and Dongxing Sec Co, you can compare the effects of market volatilities on Ye Chiu and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Dongxing Sec.
Diversification Opportunities for Ye Chiu and Dongxing Sec
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Dongxing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Ye Chiu i.e., Ye Chiu and Dongxing Sec go up and down completely randomly.
Pair Corralation between Ye Chiu and Dongxing Sec
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.04 times more return on investment than Dongxing Sec. However, Ye Chiu is 1.04 times more volatile than Dongxing Sec Co. It trades about 0.11 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.17 per unit of risk. If you would invest 284.00 in Ye Chiu Metal on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Ye Chiu Metal or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Dongxing Sec Co
Performance |
| Timeline |
| Ye Chiu Metal |
| Dongxing Sec |
Ye Chiu and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Dongxing Sec
The main advantage of trading using opposite Ye Chiu and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's 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 |
| Dongxing Sec vs. Maccura Biotechnology Co | Dongxing Sec vs. Jiangsu GDK Biotechnology | Dongxing Sec vs. Fiberhome Telecommunication Technologies | Dongxing Sec vs. Ningbo MedicalSystem Biotechnology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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