Correlation Between Zhongshan Public and ZheJiang Haers
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By analyzing existing cross correlation between Zhongshan Public Utilities and ZheJiang Haers Vacuum, you can compare the effects of market volatilities on Zhongshan Public and ZheJiang Haers 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 Zhongshan Public with a short position of ZheJiang Haers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and ZheJiang Haers.
Diversification Opportunities for Zhongshan Public and ZheJiang Haers
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongshan and ZheJiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and ZheJiang Haers Vacuum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZheJiang Haers Vacuum and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with ZheJiang Haers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZheJiang Haers Vacuum has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and ZheJiang Haers go up and down completely randomly.
Pair Corralation between Zhongshan Public and ZheJiang Haers
Assuming the 90 days trading horizon Zhongshan Public is expected to generate 1.08 times less return on investment than ZheJiang Haers. But when comparing it to its historical volatility, Zhongshan Public Utilities is 1.83 times less risky than ZheJiang Haers. It trades about 0.07 of its potential returns per unit of risk. ZheJiang Haers Vacuum is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 699.00 in ZheJiang Haers Vacuum on September 12, 2024 and sell it today you would earn a total of 143.00 from holding ZheJiang Haers Vacuum or generate 20.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. ZheJiang Haers Vacuum
Performance |
| Timeline |
| Zhongshan Public Uti |
| ZheJiang Haers Vacuum |
Zhongshan Public and ZheJiang Haers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and ZheJiang Haers
The main advantage of trading using opposite Zhongshan Public and ZheJiang Haers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, ZheJiang Haers 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 Haers will offset losses from the drop in ZheJiang Haers' long position.| Zhongshan Public vs. Gansu Jiu Steel | Zhongshan Public vs. Shandong Mining Machinery | Zhongshan Public vs. Aba Chemicals Corp | Zhongshan Public vs. BlueFocus Communication Group |
| ZheJiang Haers vs. Lutian Machinery Co | ZheJiang Haers vs. PetroChina Co Ltd | ZheJiang Haers vs. Bank of China | ZheJiang Haers vs. Gansu Jiu Steel |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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