Correlation Between Zhejiang Yongjin and China Publishing
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and China Publishing Media, you can compare the effects of market volatilities on Zhejiang Yongjin and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and China Publishing.
Diversification Opportunities for Zhejiang Yongjin and China Publishing
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and China is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and China Publishing go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and China Publishing
Assuming the 90 days trading horizon Zhejiang Yongjin is expected to generate 7.79 times less return on investment than China Publishing. But when comparing it to its historical volatility, Zhejiang Yongjin Metal is 2.74 times less risky than China Publishing. It trades about 0.08 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 678.00 in China Publishing Media on September 4, 2024 and sell it today you would earn a total of 157.00 from holding China Publishing Media or generate 23.16% 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. China Publishing Media
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| China Publishing Media |
Zhejiang Yongjin and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and China Publishing
The main advantage of trading using opposite Zhejiang Yongjin and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Zhejiang Yongjin vs. Tianshan Aluminum Group | Zhejiang Yongjin vs. Jiaozuo Wanfang Aluminum | Zhejiang Yongjin vs. Zhejiang Yayi Metal | Zhejiang Yongjin vs. Zhongshan Public Utilities |
| China Publishing vs. Wuhan Yangtze Communication | China Publishing vs. Hubei Xingfa Chemicals | China Publishing vs. Lootom Telcovideo Network | China Publishing vs. Do Fluoride Chemicals Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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