Correlation Between China Citic and Zhejiang Yinlun
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By analyzing existing cross correlation between China Citic Bank and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on China Citic and Zhejiang Yinlun 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 China Citic with a short position of Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Zhejiang Yinlun.
Diversification Opportunities for China Citic and Zhejiang Yinlun
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Zhejiang is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery and China Citic 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 China Citic Bank are associated (or correlated) with Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of China Citic i.e., China Citic and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between China Citic and Zhejiang Yinlun
Assuming the 90 days trading horizon China Citic Bank is expected to under-perform the Zhejiang Yinlun. But the stock apears to be less risky and, when comparing its historical volatility, China Citic Bank is 1.7 times less risky than Zhejiang Yinlun. The stock trades about 0.0 of its potential returns per unit of risk. The Zhejiang Yinlun Machinery is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,832 in Zhejiang Yinlun Machinery on October 26, 2024 and sell it today you would earn a total of 180.00 from holding Zhejiang Yinlun Machinery or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Citic Bank vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| China Citic Bank |
| Zhejiang Yinlun Machinery |
China Citic and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Zhejiang Yinlun
The main advantage of trading using opposite China Citic and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Zhejiang Yinlun 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 Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| China Citic vs. Zhejiang Yinlun Machinery | China Citic vs. Meinian Onehealth Healthcare | China Citic vs. Shandong Sinoglory Health | China Citic vs. Yunnan Jianzhijia Health Chain |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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