Correlation Between HUAQIN TECHNOLOGY and Zhejiang Yayi
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Zhejiang Yayi Metal, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY with a short position of Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Zhejiang Yayi.
Diversification Opportunities for HUAQIN TECHNOLOGY and Zhejiang Yayi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HUAQIN and Zhejiang is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Zhejiang Yayi
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 0.75 times more return on investment than Zhejiang Yayi. However, HUAQIN TECHNOLOGY LTD is 1.33 times less risky than Zhejiang Yayi. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.0 per unit of risk. If you would invest 5,658 in HUAQIN TECHNOLOGY LTD on September 4, 2024 and sell it today you would earn a total of 932.00 from holding HUAQIN TECHNOLOGY LTD or generate 16.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Zhejiang Yayi Metal |
HUAQIN TECHNOLOGY and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Zhejiang Yayi
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY 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.| HUAQIN TECHNOLOGY vs. Industrial and Commercial | HUAQIN TECHNOLOGY vs. Kweichow Moutai Co | HUAQIN TECHNOLOGY vs. Agricultural Bank of | HUAQIN TECHNOLOGY vs. China Mobile Limited |
| Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. China Construction Bank | Zhejiang Yayi vs. Bank of China |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world |