Correlation Between Ye Chiu and Zhejiang Yongjin
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By analyzing existing cross correlation between Ye Chiu Metal and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Ye Chiu and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Zhejiang Yongjin.
Diversification Opportunities for Ye Chiu and Zhejiang Yongjin
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and Zhejiang is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of Ye Chiu i.e., Ye Chiu and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Ye Chiu and Zhejiang Yongjin
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the Zhejiang Yongjin. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.02 times less risky than Zhejiang Yongjin. The stock trades about -0.23 of its potential returns per unit of risk. The Zhejiang Yongjin Metal is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,855 in Zhejiang Yongjin Metal on October 23, 2024 and sell it today you would earn a total of 9.00 from holding Zhejiang Yongjin Metal or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Ye Chiu Metal |
| Zhejiang Yongjin Metal |
Ye Chiu and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Zhejiang Yongjin
The main advantage of trading using opposite Ye Chiu and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| Ye Chiu vs. Lontium Semiconductor Corp | Ye Chiu vs. Jointo Energy Investment | Ye Chiu vs. Puya Semiconductor Shanghai | Ye Chiu vs. Nuode Investment Co |
| Zhejiang Yongjin vs. Bangyan Technology Co | Zhejiang Yongjin vs. Uxi Unicomp Technology | Zhejiang Yongjin vs. Shenzhen SDG Information | Zhejiang Yongjin vs. Invengo Information Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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