Correlation Between Zhejiang Yongjin and Sinomach Automobile
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Sinomach Automobile Co, you can compare the effects of market volatilities on Zhejiang Yongjin and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Sinomach Automobile.
Diversification Opportunities for Zhejiang Yongjin and Sinomach Automobile
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Sinomach is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Sinomach Automobile
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 0.91 times more return on investment than Sinomach Automobile. However, Zhejiang Yongjin Metal is 1.1 times less risky than Sinomach Automobile. It trades about 0.31 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.12 per unit of risk. If you would invest 1,820 in Zhejiang Yongjin Metal on November 2, 2024 and sell it today you would earn a total of 195.00 from holding Zhejiang Yongjin Metal or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Sinomach Automobile Co
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Sinomach Automobile |
Zhejiang Yongjin and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Sinomach Automobile
The main advantage of trading using opposite Zhejiang Yongjin and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile'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 |
| Sinomach Automobile vs. Wasu Media Holding | Sinomach Automobile vs. Heilongjiang Publishing Media | Sinomach Automobile vs. Guangzhou Automobile Group | Sinomach Automobile vs. Chengdu B ray Media |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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