Correlation Between Zhejiang Yayi and Hengli Industrial
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Hengli Industrial Development, you can compare the effects of market volatilities on Zhejiang Yayi and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Hengli Industrial.
Diversification Opportunities for Zhejiang Yayi and Hengli Industrial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Hengli is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Zhejiang Yayi i.e., Zhejiang Yayi and Hengli Industrial go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Hengli Industrial
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.18 times more return on investment than Hengli Industrial. However, Zhejiang Yayi is 1.18 times more volatile than Hengli Industrial Development. It trades about 0.16 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.14 per unit of risk. If you would invest 1,835 in Zhejiang Yayi Metal on September 23, 2024 and sell it today you would earn a total of 812.00 from holding Zhejiang Yayi Metal or generate 44.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Yayi Metal vs. Hengli Industrial Development
Performance |
Timeline |
Zhejiang Yayi Metal |
Hengli Industrial |
Zhejiang Yayi and Hengli Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Yayi and Hengli Industrial
The main advantage of trading using opposite Zhejiang Yayi and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial'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 |
Hengli Industrial vs. China Life Insurance | Hengli Industrial vs. Cinda Securities Co | Hengli Industrial vs. Piotech Inc A | Hengli Industrial vs. Dongxing Sec Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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