Correlation Between ZJBC Information and Huagong Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between ZJBC Information Technology and Huagong Tech Co, you can compare the effects of market volatilities on ZJBC Information and Huagong Tech 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 ZJBC Information with a short position of Huagong Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Huagong Tech.
Diversification Opportunities for ZJBC Information and Huagong Tech
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZJBC and Huagong is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and Huagong Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huagong Tech and ZJBC Information 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 ZJBC Information Technology are associated (or correlated) with Huagong Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huagong Tech has no effect on the direction of ZJBC Information i.e., ZJBC Information and Huagong Tech go up and down completely randomly.
Pair Corralation between ZJBC Information and Huagong Tech
Assuming the 90 days trading horizon ZJBC Information is expected to generate 1.18 times less return on investment than Huagong Tech. In addition to that, ZJBC Information is 1.77 times more volatile than Huagong Tech Co. It trades about 0.14 of its total potential returns per unit of risk. Huagong Tech Co is currently generating about 0.28 per unit of volatility. If you would invest 3,510 in Huagong Tech Co on September 27, 2024 and sell it today you would earn a total of 493.00 from holding Huagong Tech Co or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ZJBC Information Technology vs. Huagong Tech Co
Performance |
| Timeline |
| ZJBC Information Tec |
| Huagong Tech |
ZJBC Information and Huagong Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJBC Information and Huagong Tech
The main advantage of trading using opposite ZJBC Information and Huagong Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, Huagong Tech 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 Huagong Tech will offset losses from the drop in Huagong Tech's long position.| ZJBC Information vs. Humanwell Healthcare Group | ZJBC Information vs. Chenzhou Jingui Silver | ZJBC Information vs. Guangdong Silvere Sci | ZJBC Information vs. JCHX Mining Management |
| Huagong Tech vs. Industrial and Commercial | Huagong Tech vs. China Construction Bank | Huagong Tech vs. Agricultural Bank of | Huagong Tech 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance |