Correlation Between Zangge Holding and Zhejiang Publishing
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By analyzing existing cross correlation between Zangge Holding Co and Zhejiang Publishing Media, you can compare the effects of market volatilities on Zangge Holding and Zhejiang Publishing 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 Zangge Holding with a short position of Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zangge Holding and Zhejiang Publishing.
Diversification Opportunities for Zangge Holding and Zhejiang Publishing
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zangge and Zhejiang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zangge Holding Co and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media and Zangge Holding 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 Zangge Holding Co are associated (or correlated) with Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Zangge Holding i.e., Zangge Holding and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Zangge Holding and Zhejiang Publishing
Assuming the 90 days trading horizon Zangge Holding Co is expected to generate 1.8 times more return on investment than Zhejiang Publishing. However, Zangge Holding is 1.8 times more volatile than Zhejiang Publishing Media. It trades about 0.31 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about -0.12 per unit of risk. If you would invest 3,259 in Zangge Holding Co on January 1, 2025 and sell it today you would earn a total of 444.00 from holding Zangge Holding Co or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zangge Holding Co vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Zangge Holding |
| Zhejiang Publishing Media |
Zangge Holding and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zangge Holding and Zhejiang Publishing
The main advantage of trading using opposite Zangge Holding and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zangge Holding position performs unexpectedly, Zhejiang Publishing 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 Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Zangge Holding vs. Nsfocus Information Technology | Zangge Holding vs. Linewell Software Co | Zangge Holding vs. GuangDong Leary New | Zangge Holding vs. Yankershop Food Co |
| Zhejiang Publishing vs. Industrial and Commercial | Zhejiang Publishing vs. Agricultural Bank of | Zhejiang Publishing vs. China Construction Bank | Zhejiang Publishing vs. Bank of China |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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