Correlation Between Yantai North and Zhejiang Jingsheng
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By analyzing existing cross correlation between Yantai North Andre and Zhejiang Jingsheng Mech, you can compare the effects of market volatilities on Yantai North and Zhejiang Jingsheng 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 Yantai North with a short position of Zhejiang Jingsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Zhejiang Jingsheng.
Diversification Opportunities for Yantai North and Zhejiang Jingsheng
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yantai and Zhejiang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and Zhejiang Jingsheng Mech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Jingsheng Mech and Yantai North 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 Yantai North Andre are associated (or correlated) with Zhejiang Jingsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Jingsheng Mech has no effect on the direction of Yantai North i.e., Yantai North and Zhejiang Jingsheng go up and down completely randomly.
Pair Corralation between Yantai North and Zhejiang Jingsheng
Assuming the 90 days trading horizon Yantai North is expected to generate 1.87 times less return on investment than Zhejiang Jingsheng. But when comparing it to its historical volatility, Yantai North Andre is 1.23 times less risky than Zhejiang Jingsheng. It trades about 0.21 of its potential returns per unit of risk. Zhejiang Jingsheng Mech is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 3,060 in Zhejiang Jingsheng Mech on November 28, 2024 and sell it today you would earn a total of 329.00 from holding Zhejiang Jingsheng Mech or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Yantai North Andre vs. Zhejiang Jingsheng Mech
Performance |
| Timeline |
| Yantai North Andre |
| Zhejiang Jingsheng Mech |
Yantai North and Zhejiang Jingsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Zhejiang Jingsheng
The main advantage of trading using opposite Yantai North and Zhejiang Jingsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North position performs unexpectedly, Zhejiang Jingsheng 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 Zhejiang Jingsheng will offset losses from the drop in Zhejiang Jingsheng's long position.| Yantai North vs. Shenzhen Zqgame | Yantai North vs. Bohai Leasing Co | Yantai North vs. Chongqing Road Bridge | Yantai North vs. RoadMain T Co |
| Zhejiang Jingsheng vs. Rising Nonferrous Metals | Zhejiang Jingsheng vs. Chengtun Mining Group | Zhejiang Jingsheng vs. Suzhou Industrial Park | Zhejiang Jingsheng vs. Epoxy Base Electronic |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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