Correlation Between ZJBC Information and DR
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By analyzing existing cross correlation between ZJBC Information Technology and DR Limited, you can compare the effects of market volatilities on ZJBC Information and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and DR.
Diversification Opportunities for ZJBC Information and DR
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZJBC and DR is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of ZJBC Information i.e., ZJBC Information and DR go up and down completely randomly.
Pair Corralation between ZJBC Information and DR
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 1.02 times more return on investment than DR. However, ZJBC Information is 1.02 times more volatile than DR Limited. It trades about 0.04 of its potential returns per unit of risk. DR Limited is currently generating about -0.04 per unit of risk. If you would invest 188.00 in ZJBC Information Technology on September 13, 2024 and sell it today you would earn a total of 83.00 from holding ZJBC Information Technology or generate 44.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZJBC Information Technology vs. DR Limited
Performance |
| Timeline |
| ZJBC Information Tec |
| DR Limited |
ZJBC Information and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJBC Information and DR
The main advantage of trading using opposite ZJBC Information and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, DR 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 DR will offset losses from the drop in DR's long position.| ZJBC Information vs. Ming Yang Smart | ZJBC Information vs. 159681 | ZJBC Information vs. 159005 | ZJBC Information vs. Loctek Ergonomic Technology |
| DR vs. YLZ Information Tech | DR vs. Digital China Information | DR vs. CITIC Guoan Information | DR vs. ZJBC Information Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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