Correlation Between Zhejiang Yayi and Western Mining
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Western Mining Co, you can compare the effects of market volatilities on Zhejiang Yayi and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Western Mining.
Diversification Opportunities for Zhejiang Yayi and Western Mining
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhejiang and Western is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Western Mining go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Western Mining
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.97 times more return on investment than Western Mining. However, Zhejiang Yayi is 1.97 times more volatile than Western Mining Co. It trades about 0.0 of its potential returns per unit of risk. Western Mining Co is currently generating about -0.14 per unit of risk. If you would invest 2,475 in Zhejiang Yayi Metal on September 30, 2024 and sell it today you would lose (55.00) from holding Zhejiang Yayi Metal or give up 2.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Yayi Metal vs. Western Mining Co
Performance |
Timeline |
Zhejiang Yayi Metal |
Western Mining |
Zhejiang Yayi and Western Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Yayi and Western Mining
The main advantage of trading using opposite Zhejiang Yayi and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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