Correlation Between Juewei Food and Zhejiang Yayi
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By analyzing existing cross correlation between Juewei Food Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Zhejiang Yayi.
Diversification Opportunities for Juewei Food and Zhejiang Yayi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Juewei and Zhejiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co 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 Juewei Food 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 Juewei Food Co 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 Juewei Food i.e., Juewei Food and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Juewei Food and Zhejiang Yayi
Assuming the 90 days trading horizon Juewei Food Co is expected to generate 1.12 times more return on investment than Zhejiang Yayi. However, Juewei Food is 1.12 times more volatile than Zhejiang Yayi Metal. It trades about 0.21 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.18 per unit of risk. If you would invest 1,226 in Juewei Food Co on September 12, 2024 and sell it today you would earn a total of 735.00 from holding Juewei Food Co or generate 59.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Juewei Food Co vs. Zhejiang Yayi Metal
Performance |
Timeline |
Juewei Food |
Zhejiang Yayi Metal |
Juewei Food and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juewei Food and Zhejiang Yayi
The main advantage of trading using opposite Juewei Food and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.Juewei Food vs. China Petroleum Chemical | Juewei Food vs. PetroChina Co Ltd | Juewei Food vs. China State Construction | Juewei Food vs. China Railway Group |
Zhejiang Yayi vs. Lutian Machinery Co | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. Bank of China | Zhejiang Yayi vs. Gansu Jiu Steel |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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