Correlation Between Zhejiang Yongjin and Huayi Brothers
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Huayi Brothers Media, you can compare the effects of market volatilities on Zhejiang Yongjin and Huayi Brothers 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 Huayi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Huayi Brothers.
Diversification Opportunities for Zhejiang Yongjin and Huayi Brothers
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Huayi is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Huayi Brothers Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huayi Brothers Media 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 Huayi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huayi Brothers Media has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Huayi Brothers go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Huayi Brothers
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 0.58 times more return on investment than Huayi Brothers. However, Zhejiang Yongjin Metal is 1.74 times less risky than Huayi Brothers. It trades about 0.08 of its potential returns per unit of risk. Huayi Brothers Media is currently generating about -0.21 per unit of risk. If you would invest 1,919 in Zhejiang Yongjin Metal on October 30, 2024 and sell it today you would earn a total of 96.00 from holding Zhejiang Yongjin Metal or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Huayi Brothers Media
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Huayi Brothers Media |
Zhejiang Yongjin and Huayi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Huayi Brothers
The main advantage of trading using opposite Zhejiang Yongjin and Huayi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Huayi Brothers 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 Huayi Brothers will offset losses from the drop in Huayi Brothers' 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 |
| Huayi Brothers vs. Shanghai Broadband Technology | Huayi Brothers vs. Chengdu Xinzhu RoadBridge | Huayi Brothers vs. Zhengping RoadBridge Constr | Huayi Brothers vs. Songz Automobile Air |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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