Correlation Between Jiangxi Lianchuang and Zhejiang Yayi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Jiangxi Lianchuang and Zhejiang Yayi 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 Jiangxi Lianchuang with a short position of Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Zhejiang Yayi.
Diversification Opportunities for Jiangxi Lianchuang and Zhejiang Yayi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Zhejiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal and Jiangxi Lianchuang 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 Jiangxi Lianchuang Opto electronic are associated (or correlated) with Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Zhejiang Yayi
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to generate 0.92 times more return on investment than Zhejiang Yayi. However, Jiangxi Lianchuang Opto electronic is 1.09 times less risky than Zhejiang Yayi. It trades about 0.07 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about -0.06 per unit of risk. If you would invest 4,535 in Jiangxi Lianchuang Opto electronic on September 26, 2024 and sell it today you would earn a total of 202.00 from holding Jiangxi Lianchuang Opto electronic or generate 4.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. Zhejiang Yayi Metal
Performance |
Timeline |
Jiangxi Lianchuang Opto |
Zhejiang Yayi Metal |
Jiangxi Lianchuang and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Lianchuang and Zhejiang Yayi
The main advantage of trading using opposite Jiangxi Lianchuang and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.Jiangxi Lianchuang vs. Industrial and Commercial | Jiangxi Lianchuang vs. Agricultural Bank of | Jiangxi Lianchuang vs. China Construction Bank | Jiangxi Lianchuang vs. Bank of China |
Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Bank of China | Zhejiang Yayi vs. China Construction Bank |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |