Correlation Between Ye Chiu and Jiangsu Pacific
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By analyzing existing cross correlation between Ye Chiu Metal and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Ye Chiu and Jiangsu Pacific 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 Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Jiangsu Pacific.
Diversification Opportunities for Ye Chiu and Jiangsu Pacific
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and Jiangsu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz 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 Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Ye Chiu i.e., Ye Chiu and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Ye Chiu and Jiangsu Pacific
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.79 times more return on investment than Jiangsu Pacific. However, Ye Chiu Metal is 1.26 times less risky than Jiangsu Pacific. It trades about 0.22 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about 0.13 per unit of risk. If you would invest 206.00 in Ye Chiu Metal on September 12, 2024 and sell it today you would earn a total of 94.00 from holding Ye Chiu Metal or generate 45.63% 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. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Ye Chiu Metal |
| Jiangsu Pacific Quartz |
Ye Chiu and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Jiangsu Pacific
The main advantage of trading using opposite Ye Chiu and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
| Jiangsu Pacific vs. Eastroc Beverage Group | Jiangsu Pacific vs. HaiXin Foods Co | Jiangsu Pacific vs. Shenzhen Bioeasy Biotechnology | Jiangsu Pacific vs. China National Software |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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