Correlation Between Chengdu Xingrong and Zhejiang Publishing
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Zhejiang Publishing Media, you can compare the effects of market volatilities on Chengdu Xingrong 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 Chengdu Xingrong with a short position of Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Zhejiang Publishing.
Diversification Opportunities for Chengdu Xingrong and Zhejiang Publishing
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengdu and Zhejiang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment 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 Chengdu Xingrong 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 Chengdu Xingrong Investment 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 Chengdu Xingrong i.e., Chengdu Xingrong and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Zhejiang Publishing
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.96 times more return on investment than Zhejiang Publishing. However, Chengdu Xingrong Investment is 1.04 times less risky than Zhejiang Publishing. It trades about 0.07 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about -0.01 per unit of risk. If you would invest 640.00 in Chengdu Xingrong Investment on October 18, 2024 and sell it today you would earn a total of 72.00 from holding Chengdu Xingrong Investment or generate 11.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Zhejiang Publishing Media |
Chengdu Xingrong and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Zhejiang Publishing
The main advantage of trading using opposite Chengdu Xingrong and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong 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.| Chengdu Xingrong vs. Changjiang Jinggong Steel | Chengdu Xingrong vs. Hangzhou Guotai Environmental | Chengdu Xingrong vs. Tonghua Grape Wine | Chengdu Xingrong vs. Yindu Kitchen Equipment |
| Zhejiang Publishing vs. Do Fluoride Chemicals Co | Zhejiang Publishing vs. Chengdu Xingrong Investment | Zhejiang Publishing vs. Xiandai Investment Co | Zhejiang Publishing vs. Kunwu Jiuding 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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