Correlation Between Zhejiang Yongjin and Ziel Home
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Ziel Home Furnishing, you can compare the effects of market volatilities on Zhejiang Yongjin and Ziel Home 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 Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Ziel Home.
Diversification Opportunities for Zhejiang Yongjin and Ziel Home
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Ziel is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing 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 Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Ziel Home go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Ziel Home
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 0.74 times more return on investment than Ziel Home. However, Zhejiang Yongjin Metal is 1.35 times less risky than Ziel Home. It trades about 0.1 of its potential returns per unit of risk. Ziel Home Furnishing is currently generating about 0.06 per unit of risk. If you would invest 1,629 in Zhejiang Yongjin Metal on November 2, 2024 and sell it today you would earn a total of 386.00 from holding Zhejiang Yongjin Metal or generate 23.7% 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. Ziel Home Furnishing
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Ziel Home Furnishing |
Zhejiang Yongjin and Ziel Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Ziel Home
The main advantage of trading using opposite Zhejiang Yongjin and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.| Zhejiang Yongjin vs. New Hope Dairy | Zhejiang Yongjin vs. Xiangpiaopiao Food Co | Zhejiang Yongjin vs. Heilongjiang Publishing Media | Zhejiang Yongjin vs. Sanquan Food Co |
| Ziel Home vs. De Rucci Healthy | Ziel Home vs. Meinian Onehealth Healthcare | Ziel Home vs. Heilongjiang Transport Development | Ziel Home vs. Zhejiang Yongjin Metal |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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