Correlation Between Zhejiang Yongjin and Cansino Biologics
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Cansino Biologics, you can compare the effects of market volatilities on Zhejiang Yongjin and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Cansino Biologics.
Diversification Opportunities for Zhejiang Yongjin and Cansino Biologics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Cansino is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Cansino Biologics go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Cansino Biologics
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 0.65 times more return on investment than Cansino Biologics. However, Zhejiang Yongjin Metal is 1.53 times less risky than Cansino Biologics. It trades about 0.05 of its potential returns per unit of risk. Cansino Biologics is currently generating about 0.03 per unit of risk. If you would invest 1,625 in Zhejiang Yongjin Metal on November 5, 2024 and sell it today you would earn a total of 390.00 from holding Zhejiang Yongjin Metal or generate 24.0% 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. Cansino Biologics
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Cansino Biologics |
Zhejiang Yongjin and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Cansino Biologics
The main advantage of trading using opposite Zhejiang Yongjin and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' 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 |
| Cansino Biologics vs. Zhongshan Broad Ocean Motor | Cansino Biologics vs. Central Plains Environment | Cansino Biologics vs. Shanghai Broadband Technology | Cansino Biologics vs. Hangzhou Guotai 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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