Correlation Between GRIPM Advanced and Zhejiang Yinlun
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By analyzing existing cross correlation between GRIPM Advanced Materials and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on GRIPM Advanced and Zhejiang Yinlun 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 GRIPM Advanced with a short position of Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Zhejiang Yinlun.
Diversification Opportunities for GRIPM Advanced and Zhejiang Yinlun
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIPM and Zhejiang is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery and GRIPM Advanced 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 GRIPM Advanced Materials are associated (or correlated) with Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Zhejiang Yinlun
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to under-perform the Zhejiang Yinlun. But the stock apears to be less risky and, when comparing its historical volatility, GRIPM Advanced Materials is 1.2 times less risky than Zhejiang Yinlun. The stock trades about -0.07 of its potential returns per unit of risk. The Zhejiang Yinlun Machinery is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,740 in Zhejiang Yinlun Machinery on October 14, 2024 and sell it today you would earn a total of 162.00 from holding Zhejiang Yinlun Machinery or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIPM Advanced Materials vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| GRIPM Advanced Materials |
| Zhejiang Yinlun Machinery |
GRIPM Advanced and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIPM Advanced and Zhejiang Yinlun
The main advantage of trading using opposite GRIPM Advanced and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, Zhejiang Yinlun 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 Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| GRIPM Advanced vs. Shandong Polymer Biochemicals | GRIPM Advanced vs. Jiangsu Xinri E Vehicle | GRIPM Advanced vs. Iat Automobile Technology | GRIPM Advanced vs. Ningbo Fangzheng Automobile |
| Zhejiang Yinlun vs. Glodon Software Co | Zhejiang Yinlun vs. GRIPM Advanced Materials | Zhejiang Yinlun vs. Kangxin New Materials | Zhejiang Yinlun vs. Ningxia Building Materials |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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