Correlation Between City Development and Zhejiang Century
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By analyzing existing cross correlation between City Development Environment and Zhejiang Century Huatong, you can compare the effects of market volatilities on City Development and Zhejiang Century 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 City Development with a short position of Zhejiang Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Development and Zhejiang Century.
Diversification Opportunities for City Development and Zhejiang Century
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between City and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding City Development Environment and Zhejiang Century Huatong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Century Huatong and City Development 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 City Development Environment are associated (or correlated) with Zhejiang Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Century Huatong has no effect on the direction of City Development i.e., City Development and Zhejiang Century go up and down completely randomly.
Pair Corralation between City Development and Zhejiang Century
Assuming the 90 days trading horizon City Development Environment is expected to generate 0.76 times more return on investment than Zhejiang Century. However, City Development Environment is 1.31 times less risky than Zhejiang Century. It trades about 0.08 of its potential returns per unit of risk. Zhejiang Century Huatong is currently generating about 0.05 per unit of risk. If you would invest 1,144 in City Development Environment on September 3, 2024 and sell it today you would earn a total of 226.00 from holding City Development Environment or generate 19.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
City Development Environment vs. Zhejiang Century Huatong
Performance |
| Timeline |
| City Development Env |
| Zhejiang Century Huatong |
City Development and Zhejiang Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Development and Zhejiang Century
The main advantage of trading using opposite City Development and Zhejiang Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Development position performs unexpectedly, Zhejiang Century 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 Century will offset losses from the drop in Zhejiang Century's long position.| City Development vs. Beijing Yanjing Brewery | City Development vs. Oriental Times Media | City Development vs. Ligao Foods CoLtd | City Development vs. Beijing Sanyuan Foods |
| Zhejiang Century vs. PetroChina Co Ltd | Zhejiang Century vs. China Mobile Limited | Zhejiang Century vs. Industrial and Commercial | Zhejiang Century vs. China Life 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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