Correlation Between Zhejiang Yongjin and Shanghai Yanpu
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Zhejiang Yongjin and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Shanghai Yanpu.
Diversification Opportunities for Zhejiang Yongjin and Shanghai Yanpu
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Shanghai is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Shanghai Yanpu
Assuming the 90 days trading horizon Zhejiang Yongjin is expected to generate 1.48 times less return on investment than Shanghai Yanpu. But when comparing it to its historical volatility, Zhejiang Yongjin Metal is 1.19 times less risky than Shanghai Yanpu. It trades about 0.1 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,640 in Shanghai Yanpu Metal on November 2, 2024 and sell it today you would earn a total of 987.00 from holding Shanghai Yanpu Metal or generate 37.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Shanghai Yanpu Metal |
Zhejiang Yongjin and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Shanghai Yanpu
The main advantage of trading using opposite Zhejiang Yongjin and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu'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 |
| Shanghai Yanpu vs. Sublime China Information | Shanghai Yanpu vs. Invengo Information Technology | Shanghai Yanpu vs. Uroica Mining Safety | Shanghai Yanpu vs. Zijin Mining Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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