Correlation Between Huitong Construction and Zhejiang Yinlun
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By analyzing existing cross correlation between Huitong Construction Group and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Huitong Construction 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 Huitong Construction with a short position of Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huitong Construction and Zhejiang Yinlun.
Diversification Opportunities for Huitong Construction and Zhejiang Yinlun
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huitong and Zhejiang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Huitong Construction Group 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 Huitong 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 Huitong Construction Group 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 Huitong Construction i.e., Huitong Construction and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Huitong Construction and Zhejiang Yinlun
Assuming the 90 days trading horizon Huitong Construction Group is expected to generate 0.7 times more return on investment than Zhejiang Yinlun. However, Huitong Construction Group is 1.42 times less risky than Zhejiang Yinlun. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about -0.1 per unit of risk. If you would invest 472.00 in Huitong Construction Group on January 28, 2025 and sell it today you would lose (5.00) from holding Huitong Construction Group or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huitong Construction Group vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Huitong Construction |
| Zhejiang Yinlun Machinery |
Huitong Construction and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huitong Construction and Zhejiang Yinlun
The main advantage of trading using opposite Huitong Construction and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huitong Construction 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.| Huitong Construction vs. Fujian Anjoy Foods | Huitong Construction vs. Ningbo Jintian Copper | Huitong Construction vs. Xiamen Jihong Package | Huitong Construction vs. Shantou Wanshun Package |
| Zhejiang Yinlun vs. Postal Savings Bank | Zhejiang Yinlun vs. Chengdu Xingrong Investment | Zhejiang Yinlun vs. Hunan Investment Group | Zhejiang Yinlun vs. Chongqing Changan Automobile |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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