Correlation Between Zhejiang Juhua and Yunnan Chihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Juhua Co and Yunnan Chihong ZincGermanium, you can compare the effects of market volatilities on Zhejiang Juhua and Yunnan Chihong 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 Juhua with a short position of Yunnan Chihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Yunnan Chihong.
Diversification Opportunities for Zhejiang Juhua and Yunnan Chihong
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Yunnan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Yunnan Chihong ZincGermanium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Chihong ZincG and Zhejiang Juhua 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 Juhua Co are associated (or correlated) with Yunnan Chihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Chihong ZincG has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and Yunnan Chihong go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Yunnan Chihong
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 1.65 times more return on investment than Yunnan Chihong. However, Zhejiang Juhua is 1.65 times more volatile than Yunnan Chihong ZincGermanium. It trades about 0.34 of its potential returns per unit of risk. Yunnan Chihong ZincGermanium is currently generating about -0.01 per unit of risk. If you would invest 2,054 in Zhejiang Juhua Co on September 25, 2024 and sell it today you would earn a total of 361.00 from holding Zhejiang Juhua Co or generate 17.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Zhejiang Juhua Co vs. Yunnan Chihong ZincGermanium
Performance |
Timeline |
Zhejiang Juhua |
Yunnan Chihong ZincG |
Zhejiang Juhua and Yunnan Chihong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Juhua and Yunnan Chihong
The main advantage of trading using opposite Zhejiang Juhua and Yunnan Chihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, Yunnan Chihong 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 Yunnan Chihong will offset losses from the drop in Yunnan Chihong's long position.Zhejiang Juhua vs. Zijin Mining Group | Zhejiang Juhua vs. Wanhua Chemical Group | Zhejiang Juhua vs. Baoshan Iron Steel | Zhejiang Juhua vs. Shandong Gold Mining |
Yunnan Chihong vs. Zijin Mining Group | Yunnan Chihong vs. Wanhua Chemical Group | Yunnan Chihong vs. Baoshan Iron Steel | Yunnan Chihong 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |