Correlation Between Zhejiang Yongjin and Ningbo Jintian
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Ningbo Jintian Copper, you can compare the effects of market volatilities on Zhejiang Yongjin and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Ningbo Jintian.
Diversification Opportunities for Zhejiang Yongjin and Ningbo Jintian
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Ningbo is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Ningbo Jintian
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 1.39 times more return on investment than Ningbo Jintian. However, Zhejiang Yongjin is 1.39 times more volatile than Ningbo Jintian Copper. It trades about 0.37 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.32 per unit of risk. If you would invest 1,800 in Zhejiang Yongjin Metal on November 4, 2024 and sell it today you would earn a total of 215.00 from holding Zhejiang Yongjin Metal or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Ningbo Jintian Copper |
Zhejiang Yongjin and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Ningbo Jintian
The main advantage of trading using opposite Zhejiang Yongjin and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Zhejiang Yongjin vs. Montage Technology Co | Zhejiang Yongjin vs. Jinyu Bio Technology Co | Zhejiang Yongjin vs. Kunshan Dongwei Technology | Zhejiang Yongjin vs. Shanghai Ziyan Foods |
| Ningbo Jintian vs. Wonders Information | Ningbo Jintian vs. East Money Information | Ningbo Jintian vs. Biwin Storage Technology | Ningbo Jintian vs. Guangdong Liantai Environmental |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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