Correlation Between Zhejiang Yayi and Sany Heavy
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Sany Heavy Energy, you can compare the effects of market volatilities on Zhejiang Yayi and Sany Heavy 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 Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Sany Heavy.
Diversification Opportunities for Zhejiang Yayi and Sany Heavy
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Sany is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Sany Heavy Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Energy 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Energy has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Sany Heavy go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Sany Heavy
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.76 times more return on investment than Sany Heavy. However, Zhejiang Yayi is 1.76 times more volatile than Sany Heavy Energy. It trades about 0.01 of its potential returns per unit of risk. Sany Heavy Energy is currently generating about 0.01 per unit of risk. If you would invest 2,773 in Zhejiang Yayi Metal on October 3, 2024 and sell it today you would lose (435.00) from holding Zhejiang Yayi Metal or give up 15.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Yayi Metal vs. Sany Heavy Energy
Performance |
Timeline |
Zhejiang Yayi Metal |
Sany Heavy Energy |
Zhejiang Yayi and Sany Heavy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Yayi and Sany Heavy
The main advantage of trading using opposite Zhejiang Yayi and Sany Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Sany Heavy 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 Sany Heavy will offset losses from the drop in Sany Heavy's long position.Zhejiang Yayi vs. Cultural Investment Holdings | Zhejiang Yayi vs. Gome Telecom Equipment | Zhejiang Yayi vs. Bus Online Co | Zhejiang Yayi vs. Holitech Technology Co |
Sany Heavy vs. Kweichow Moutai Co | Sany Heavy vs. NAURA Technology Group | Sany Heavy vs. Zhejiang Orient Gene | Sany Heavy vs. APT Medical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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