Correlation Between Financial Street and Zhangjiagang Elegant
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By analyzing existing cross correlation between Financial Street Holdings and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Financial Street and Zhangjiagang Elegant 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 Financial Street with a short position of Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Zhangjiagang Elegant.
Diversification Opportunities for Financial Street and Zhangjiagang Elegant
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Financial and Zhangjiagang is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home and Financial Street 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 Financial Street Holdings are associated (or correlated) with Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Financial Street i.e., Financial Street and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Financial Street and Zhangjiagang Elegant
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Zhangjiagang Elegant. But the stock apears to be less risky and, when comparing its historical volatility, Financial Street Holdings is 1.66 times less risky than Zhangjiagang Elegant. The stock trades about -0.59 of its potential returns per unit of risk. The Zhangjiagang Elegant Home is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Zhangjiagang Elegant Home on October 12, 2024 and sell it today you would lose (154.00) from holding Zhangjiagang Elegant Home or give up 14.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| Financial Street Holdings |
| Zhangjiagang Elegant Home |
Financial Street and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Zhangjiagang Elegant
The main advantage of trading using opposite Financial Street and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| Financial Street vs. Henan Shuanghui Investment | Financial Street vs. Jiujiang Shanshui Technology | Financial Street vs. INKON Life Technology | Financial Street vs. Shanghai Material Trading |
| Zhangjiagang Elegant vs. China Eastern Airlines | Zhangjiagang Elegant vs. Financial Street Holdings | Zhangjiagang Elegant vs. Agricultural Bank of | Zhangjiagang Elegant vs. Ping An Insurance |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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