Correlation Between Zhejiang Yayi and Xinxiang Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Yayi Metal and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Zhejiang Yayi and Xinxiang Chemical 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 Yayi with a short position of Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Xinxiang Chemical.
Diversification Opportunities for Zhejiang Yayi and Xinxiang Chemical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Xinxiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber and Zhejiang Yayi 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 Yayi Metal are associated (or correlated) with Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Xinxiang Chemical
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to under-perform the Xinxiang Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Yayi Metal is 1.08 times less risky than Xinxiang Chemical. The stock trades about -0.05 of its potential returns per unit of risk. The Xinxiang Chemical Fiber is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 434.00 in Xinxiang Chemical Fiber on September 25, 2024 and sell it today you would lose (8.00) from holding Xinxiang Chemical Fiber or give up 1.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Yayi Metal vs. Xinxiang Chemical Fiber
Performance |
Timeline |
Zhejiang Yayi Metal |
Xinxiang Chemical Fiber |
Zhejiang Yayi and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Yayi and Xinxiang Chemical
The main advantage of trading using opposite Zhejiang Yayi and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Bank of China | Zhejiang Yayi vs. China Construction Bank |
Xinxiang Chemical vs. Zijin Mining Group | Xinxiang Chemical vs. Wanhua Chemical Group | Xinxiang Chemical vs. Baoshan Iron Steel | Xinxiang Chemical vs. Shandong Gold Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |