Correlation Between Zhejiang Changhua and Zhejiang Yueling

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Can any of the company-specific risk be diversified away by investing in both Zhejiang Changhua and Zhejiang Yueling at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zhejiang Changhua and Zhejiang Yueling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhejiang Changhua Auto and Zhejiang Yueling Co, you can compare the effects of market volatilities on Zhejiang Changhua and Zhejiang Yueling 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 Changhua with a short position of Zhejiang Yueling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Changhua and Zhejiang Yueling.

Diversification Opportunities for Zhejiang Changhua and Zhejiang Yueling

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Zhejiang and Zhejiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Changhua Auto and Zhejiang Yueling Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yueling and Zhejiang Changhua 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 Changhua Auto are associated (or correlated) with Zhejiang Yueling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yueling has no effect on the direction of Zhejiang Changhua i.e., Zhejiang Changhua and Zhejiang Yueling go up and down completely randomly.

Pair Corralation between Zhejiang Changhua and Zhejiang Yueling

If you would invest (100.00) in Zhejiang Yueling Co on September 8, 2025 and sell it today you would earn a total of  100.00  from holding Zhejiang Yueling Co or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Zhejiang Changhua Auto  vs.  Zhejiang Yueling Co

 Performance 
       Timeline  
Zhejiang Changhua Auto 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Zhejiang Changhua Auto has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Zhejiang Changhua is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Zhejiang Yueling 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Zhejiang Yueling Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Zhejiang Yueling may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Zhejiang Changhua and Zhejiang Yueling Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Zhejiang Changhua and Zhejiang Yueling

The main advantage of trading using opposite Zhejiang Changhua and Zhejiang Yueling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Changhua position performs unexpectedly, Zhejiang Yueling 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 Yueling will offset losses from the drop in Zhejiang Yueling's long position.
The idea behind Zhejiang Changhua Auto and Zhejiang Yueling Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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