Correlation Between Ningbo Jintian and Zhejiang Yongjin
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By analyzing existing cross correlation between Ningbo Jintian Copper and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Ningbo Jintian 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 Ningbo Jintian with a short position of Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Zhejiang Yongjin.
Diversification Opportunities for Ningbo Jintian and Zhejiang Yongjin
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Zhejiang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper 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 Ningbo Jintian 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 Ningbo Jintian Copper 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 Ningbo Jintian i.e., Ningbo Jintian and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Zhejiang Yongjin
Assuming the 90 days trading horizon Ningbo Jintian is expected to generate 1.59 times less return on investment than Zhejiang Yongjin. But when comparing it to its historical volatility, Ningbo Jintian Copper is 1.39 times less risky than Zhejiang Yongjin. It trades about 0.32 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Zhejiang Yongjin Metal on November 4, 2024 and sell it today you would earn a total of 215.00 from holding Zhejiang Yongjin Metal or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Zhejiang Yongjin Metal |
Ningbo Jintian and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Zhejiang Yongjin
The main advantage of trading using opposite Ningbo Jintian and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian 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.| Ningbo Jintian vs. Wonders Information | Ningbo Jintian vs. East Money Information | Ningbo Jintian vs. Biwin Storage Technology | Ningbo Jintian vs. Guangdong Liantai Environmental |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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