Correlation Between Zhejiang Yongjin and Wuliangye Yibin
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Wuliangye Yibin Co, you can compare the effects of market volatilities on Zhejiang Yongjin and Wuliangye Yibin 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 Zhejiang Yongjin with a short position of Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Wuliangye Yibin.
Diversification Opportunities for Zhejiang Yongjin and Wuliangye Yibin
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Wuliangye is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin and Zhejiang Yongjin 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 Zhejiang Yongjin Metal are associated (or correlated) with Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Wuliangye Yibin
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to under-perform the Wuliangye Yibin. In addition to that, Zhejiang Yongjin is 1.14 times more volatile than Wuliangye Yibin Co. It trades about -0.03 of its total potential returns per unit of risk. Wuliangye Yibin Co is currently generating about 0.0 per unit of volatility. If you would invest 15,879 in Wuliangye Yibin Co on August 26, 2024 and sell it today you would lose (1,390) from holding Wuliangye Yibin Co or give up 8.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Wuliangye Yibin Co
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Wuliangye Yibin |
Zhejiang Yongjin and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Wuliangye Yibin
The main advantage of trading using opposite Zhejiang Yongjin and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin's long position.| Zhejiang Yongjin vs. Zhejiang Yayi Metal | Zhejiang Yongjin vs. Ye Chiu Metal | Zhejiang Yongjin vs. Dalian Thermal Power | Zhejiang Yongjin vs. Lonkey Industrial Co |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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