Correlation Between Ningbo Construction and Zhejiang Yayi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Construction Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Ningbo Construction and Zhejiang Yayi 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 Construction with a short position of Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Zhejiang Yayi.
Diversification Opportunities for Ningbo Construction and Zhejiang Yayi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Zhejiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal and Ningbo Construction 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 Construction Co are associated (or correlated) with Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Ningbo Construction and Zhejiang Yayi
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 1.48 times more return on investment than Zhejiang Yayi. However, Ningbo Construction is 1.48 times more volatile than Zhejiang Yayi Metal. It trades about 0.24 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.03 per unit of risk. If you would invest 408.00 in Ningbo Construction Co on August 25, 2024 and sell it today you would earn a total of 91.00 from holding Ningbo Construction Co or generate 22.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ningbo Construction Co vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Ningbo Construction |
| Zhejiang Yayi Metal |
Ningbo Construction and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Zhejiang Yayi
The main advantage of trading using opposite Ningbo Construction and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Zhejiang Yayi 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 Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Ningbo Construction vs. Duzhe Publishing Media | Ningbo Construction vs. Northern United Publishing | Ningbo Construction vs. Zhongyin Babi Food | Ningbo Construction vs. Sichuan Teway Food |
| Zhejiang Yayi vs. China Petroleum Chemical | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. China State Construction | Zhejiang Yayi vs. China Railway Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |