Correlation Between Zhejiang Yongjin and Ye Chiu
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Ye Chiu Metal, you can compare the effects of market volatilities on Zhejiang Yongjin and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Ye Chiu.
Diversification Opportunities for Zhejiang Yongjin and Ye Chiu
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and 601388 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Ye Chiu go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Ye Chiu
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 0.85 times more return on investment than Ye Chiu. However, Zhejiang Yongjin Metal is 1.18 times less risky than Ye Chiu. It trades about 0.02 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.02 per unit of risk. If you would invest 1,944 in Zhejiang Yongjin Metal on November 3, 2024 and sell it today you would earn a total of 71.00 from holding Zhejiang Yongjin Metal or generate 3.65% 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. Ye Chiu Metal
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Ye Chiu Metal |
Zhejiang Yongjin and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Ye Chiu
The main advantage of trading using opposite Zhejiang Yongjin and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu'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 |
| Ye Chiu vs. Nuode Investment Co | Ye Chiu vs. Shenzhen Centralcon Investment | Ye Chiu vs. Suzhou Douson Drilling | Ye Chiu vs. Zhejiang Kingland Pipeline |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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