Correlation Between Zhongshan Public and Jason Furniture
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By analyzing existing cross correlation between Zhongshan Public Utilities and Jason Furniture, you can compare the effects of market volatilities on Zhongshan Public and Jason Furniture 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 Jason Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Jason Furniture.
Diversification Opportunities for Zhongshan Public and Jason Furniture
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongshan and Jason is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Jason Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jason Furniture 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 Jason Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jason Furniture has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Jason Furniture go up and down completely randomly.
Pair Corralation between Zhongshan Public and Jason Furniture
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.8 times more return on investment than Jason Furniture. However, Zhongshan Public Utilities is 1.26 times less risky than Jason Furniture. It trades about -0.18 of its potential returns per unit of risk. Jason Furniture is currently generating about -0.21 per unit of risk. If you would invest 906.00 in Zhongshan Public Utilities on October 14, 2024 and sell it today you would lose (47.00) from holding Zhongshan Public Utilities or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Jason Furniture
Performance |
| Timeline |
| Zhongshan Public Uti |
| Jason Furniture |
Zhongshan Public and Jason Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Jason Furniture
The main advantage of trading using opposite Zhongshan Public and Jason Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Jason Furniture 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 Jason Furniture will offset losses from the drop in Jason Furniture's long position.| Zhongshan Public vs. Runjian Communication Co | Zhongshan Public vs. State Grid InformationCommunication | Zhongshan Public vs. Wuhan Yangtze Communication | Zhongshan Public vs. Western Metal Materials |
| Jason Furniture vs. Guangzhou Zhujiang Brewery | Jason Furniture vs. Zhongshan Public Utilities | Jason Furniture vs. Anhui Xinhua Media | Jason Furniture vs. China Publishing Media |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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