Correlation Between ZTE Corp and Jiangsu Jinling
Specify exactly 2 symbols:
By analyzing existing cross correlation between ZTE Corp and Jiangsu Jinling Sports, you can compare the effects of market volatilities on ZTE Corp and Jiangsu Jinling 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 ZTE Corp with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTE Corp and Jiangsu Jinling.
Diversification Opportunities for ZTE Corp and Jiangsu Jinling
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ZTE and Jiangsu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding ZTE Corp and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and ZTE Corp 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 ZTE Corp are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of ZTE Corp i.e., ZTE Corp and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between ZTE Corp and Jiangsu Jinling
Assuming the 90 days trading horizon ZTE Corp is expected to generate 0.75 times more return on investment than Jiangsu Jinling. However, ZTE Corp is 1.34 times less risky than Jiangsu Jinling. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.03 per unit of risk. If you would invest 2,536 in ZTE Corp on August 24, 2024 and sell it today you would earn a total of 559.00 from holding ZTE Corp or generate 22.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZTE Corp vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| ZTE Corp |
| Jiangsu Jinling Sports |
ZTE Corp and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTE Corp and Jiangsu Jinling
The main advantage of trading using opposite ZTE Corp and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTE Corp position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| ZTE Corp vs. Jiangsu Jinling Sports | ZTE Corp vs. Everdisplay Optronics Shanghai | ZTE Corp vs. Lander Sports Development | ZTE Corp vs. Nuode Investment Co |
| Jiangsu Jinling vs. Kweichow Moutai Co | Jiangsu Jinling vs. Contemporary Amperex Technology | Jiangsu Jinling vs. G bits Network Technology | Jiangsu Jinling vs. Beijing Roborock Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |