Correlation Between Zhejiang Yongjin and Henan Shuanghui
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Henan Shuanghui Investment, you can compare the effects of market volatilities on Zhejiang Yongjin and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Henan Shuanghui.
Diversification Opportunities for Zhejiang Yongjin and Henan Shuanghui
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Henan is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Henan Shuanghui
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 1.41 times more return on investment than Henan Shuanghui. However, Zhejiang Yongjin is 1.41 times more volatile than Henan Shuanghui Investment. It trades about 0.19 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.04 per unit of risk. If you would invest 1,883 in Zhejiang Yongjin Metal on October 30, 2024 and sell it today you would earn a total of 132.00 from holding Zhejiang Yongjin Metal or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Henan Shuanghui Inve |
Zhejiang Yongjin and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Henan Shuanghui
The main advantage of trading using opposite Zhejiang Yongjin and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Zhejiang Yongjin vs. Zijin Mining Group | Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Shandong Gold Mining |
| Henan Shuanghui vs. Kweichow Moutai Co | Henan Shuanghui vs. Contemporary Amperex Technology | Henan Shuanghui vs. G bits Network Technology | Henan Shuanghui vs. Beijing Roborock Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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