Correlation Between Zhejiang Yueling and Zhejiang Xinao
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By analyzing existing cross correlation between Zhejiang Yueling Co and Zhejiang Xinao Textiles, you can compare the effects of market volatilities on Zhejiang Yueling and Zhejiang Xinao 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 Yueling with a short position of Zhejiang Xinao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yueling and Zhejiang Xinao.
Diversification Opportunities for Zhejiang Yueling and Zhejiang Xinao
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Zhejiang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yueling Co and Zhejiang Xinao Textiles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Xinao Textiles and Zhejiang Yueling 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 Yueling Co are associated (or correlated) with Zhejiang Xinao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Xinao Textiles has no effect on the direction of Zhejiang Yueling i.e., Zhejiang Yueling and Zhejiang Xinao go up and down completely randomly.
Pair Corralation between Zhejiang Yueling and Zhejiang Xinao
Assuming the 90 days trading horizon Zhejiang Yueling Co is expected to under-perform the Zhejiang Xinao. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Yueling Co is 1.04 times less risky than Zhejiang Xinao. The stock trades about -0.04 of its potential returns per unit of risk. The Zhejiang Xinao Textiles is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 705.00 in Zhejiang Xinao Textiles on September 6, 2025 and sell it today you would earn a total of 62.00 from holding Zhejiang Xinao Textiles or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yueling Co vs. Zhejiang Xinao Textiles
Performance |
| Timeline |
| Zhejiang Yueling |
| Zhejiang Xinao Textiles |
Zhejiang Yueling and Zhejiang Xinao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yueling and Zhejiang Xinao
The main advantage of trading using opposite Zhejiang Yueling and Zhejiang Xinao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yueling position performs unexpectedly, Zhejiang Xinao 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 Xinao will offset losses from the drop in Zhejiang Xinao's long position.| Zhejiang Yueling vs. Shenzhen Jinxinnong Feed | Zhejiang Yueling vs. Kweichow Moutai Co | Zhejiang Yueling vs. G bits Network Technology | Zhejiang Yueling vs. Contemporary Amperex Technology |
| Zhejiang Xinao vs. Healthcare Co | Zhejiang Xinao vs. Yunnan Jianzhijia Health Chain | Zhejiang Xinao vs. Tianshui Huatian Technology | Zhejiang Xinao vs. Linewell Software 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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