Correlation Between Zhejiang Yongjin and Western Mining
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Western Mining Co, you can compare the effects of market volatilities on Zhejiang Yongjin and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Western Mining.
Diversification Opportunities for Zhejiang Yongjin and Western Mining
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Western is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Western Mining go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Western Mining
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to under-perform the Western Mining. In addition to that, Zhejiang Yongjin is 1.01 times more volatile than Western Mining Co. It trades about -0.03 of its total potential returns per unit of risk. Western Mining Co is currently generating about 0.06 per unit of volatility. If you would invest 1,014 in Western Mining Co on October 28, 2024 and sell it today you would earn a total of 734.00 from holding Western Mining Co or generate 72.39% 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. Western Mining Co
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Western Mining |
Zhejiang Yongjin and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Western Mining
The main advantage of trading using opposite Zhejiang Yongjin and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining'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 |
| Western Mining vs. JCHX Mining Management | Western Mining vs. Shenzhen Topway Video | Western Mining vs. Shanghai Yanpu Metal | Western Mining vs. Guangdong Jingyi 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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