Correlation Between ZJBC Information and Chongqing Road
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By analyzing existing cross correlation between ZJBC Information Technology and Chongqing Road Bridge, you can compare the effects of market volatilities on ZJBC Information and Chongqing Road 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 Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Chongqing Road.
Diversification Opportunities for ZJBC Information and Chongqing Road
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZJBC and Chongqing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge 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 Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of ZJBC Information i.e., ZJBC Information and Chongqing Road go up and down completely randomly.
Pair Corralation between ZJBC Information and Chongqing Road
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 0.94 times more return on investment than Chongqing Road. However, ZJBC Information Technology is 1.06 times less risky than Chongqing Road. It trades about 0.31 of its potential returns per unit of risk. Chongqing Road Bridge is currently generating about 0.07 per unit of risk. If you would invest 218.00 in ZJBC Information Technology on September 13, 2024 and sell it today you would earn a total of 53.00 from holding ZJBC Information Technology or generate 24.31% 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. Chongqing Road Bridge
Performance |
| Timeline |
| ZJBC Information Tec |
| Chongqing Road Bridge |
ZJBC Information and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJBC Information and Chongqing Road
The main advantage of trading using opposite ZJBC Information and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road's long position.| ZJBC Information vs. Ming Yang Smart | ZJBC Information vs. 159681 | ZJBC Information vs. 159005 | ZJBC Information vs. Loctek Ergonomic Technology |
| Chongqing Road vs. Hubeiyichang Transportation Group | Chongqing Road vs. Zhejiang Qianjiang Motorcycle | Chongqing Road vs. Dongfeng Automobile Co | Chongqing Road vs. Harbin Hatou Investment |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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