Correlation Between Zhejiang Yayi and Nanjing Medlander
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Nanjing Medlander Medical, you can compare the effects of market volatilities on Zhejiang Yayi and Nanjing Medlander 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 Nanjing Medlander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Nanjing Medlander.
Diversification Opportunities for Zhejiang Yayi and Nanjing Medlander
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Nanjing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Nanjing Medlander Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Medlander Medical 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 Nanjing Medlander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Medlander Medical has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Nanjing Medlander go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Nanjing Medlander
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to under-perform the Nanjing Medlander. In addition to that, Zhejiang Yayi is 1.92 times more volatile than Nanjing Medlander Medical. It trades about -0.06 of its total potential returns per unit of risk. Nanjing Medlander Medical is currently generating about -0.1 per unit of volatility. If you would invest 2,543 in Nanjing Medlander Medical on September 26, 2024 and sell it today you would lose (124.00) from holding Nanjing Medlander Medical or give up 4.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Yayi Metal vs. Nanjing Medlander Medical
Performance |
Timeline |
Zhejiang Yayi Metal |
Nanjing Medlander Medical |
Zhejiang Yayi and Nanjing Medlander Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Yayi and Nanjing Medlander
The main advantage of trading using opposite Zhejiang Yayi and Nanjing Medlander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Nanjing Medlander 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 Nanjing Medlander will offset losses from the drop in Nanjing Medlander'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 |
Nanjing Medlander vs. New China Life | Nanjing Medlander vs. Ming Yang Smart | Nanjing Medlander vs. 159681 | Nanjing Medlander vs. 159005 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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