Correlation Between Epoxy Base and Zhejiang Yongjin
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By analyzing existing cross correlation between Epoxy Base Electronic and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Zhejiang Yongjin.
Diversification Opportunities for Epoxy Base and Zhejiang Yongjin
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Epoxy and Zhejiang is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic 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 Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Epoxy Base and Zhejiang Yongjin
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to generate 1.5 times more return on investment than Zhejiang Yongjin. However, Epoxy Base is 1.5 times more volatile than Zhejiang Yongjin Metal. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.04 per unit of risk. If you would invest 513.00 in Epoxy Base Electronic on October 16, 2024 and sell it today you would earn a total of 65.00 from holding Epoxy Base Electronic or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Epoxy Base Electronic |
| Zhejiang Yongjin Metal |
Epoxy Base and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Zhejiang Yongjin
The main advantage of trading using opposite Epoxy Base and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Inspur Software Co | Epoxy Base vs. Hangzhou Pinming Software | Epoxy Base vs. Digiwin Software Co | Epoxy Base vs. Kuangda Technology Group |
| Zhejiang Yongjin vs. Zijin Mining Group | Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Shandong Gold Mining |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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