Correlation Between Chinese Maritime and Yi Jinn
Can any of the company-specific risk be diversified away by investing in both Chinese Maritime and Yi Jinn at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chinese Maritime and Yi Jinn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Maritime Transport and Yi Jinn Industrial, you can compare the effects of market volatilities on Chinese Maritime and Yi Jinn 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 Chinese Maritime with a short position of Yi Jinn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Maritime and Yi Jinn.
Diversification Opportunities for Chinese Maritime and Yi Jinn
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chinese and 1457 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Maritime Transport and Yi Jinn Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yi Jinn Industrial and Chinese Maritime 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 Chinese Maritime Transport are associated (or correlated) with Yi Jinn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yi Jinn Industrial has no effect on the direction of Chinese Maritime i.e., Chinese Maritime and Yi Jinn go up and down completely randomly.
Pair Corralation between Chinese Maritime and Yi Jinn
Assuming the 90 days trading horizon Chinese Maritime Transport is expected to generate 4.61 times more return on investment than Yi Jinn. However, Chinese Maritime is 4.61 times more volatile than Yi Jinn Industrial. It trades about 0.39 of its potential returns per unit of risk. Yi Jinn Industrial is currently generating about 0.27 per unit of risk. If you would invest 3,885 in Chinese Maritime Transport on December 5, 2024 and sell it today you would earn a total of 900.00 from holding Chinese Maritime Transport or generate 23.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chinese Maritime Transport vs. Yi Jinn Industrial
Performance |
Timeline |
Chinese Maritime Tra |
Yi Jinn Industrial |
Chinese Maritime and Yi Jinn Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chinese Maritime and Yi Jinn
The main advantage of trading using opposite Chinese Maritime and Yi Jinn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Maritime position performs unexpectedly, Yi Jinn 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 Yi Jinn will offset losses from the drop in Yi Jinn's long position.Chinese Maritime vs. U Ming Marine Transport | Chinese Maritime vs. Sincere Navigation Corp | Chinese Maritime vs. Taiwan Navigation Co | Chinese Maritime vs. Huaku Development Co |
Yi Jinn vs. Zig Sheng Industrial | Yi Jinn vs. Hong Yi Fiber | Yi Jinn vs. Lealea Enterprise Co | Yi Jinn vs. Shinkong Synthetic Fiber |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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