Correlation Between ZJBC Information and China Marine
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By analyzing existing cross correlation between ZJBC Information Technology and China Marine Information, you can compare the effects of market volatilities on ZJBC Information and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and China Marine.
Diversification Opportunities for ZJBC Information and China Marine
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ZJBC and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of ZJBC Information i.e., ZJBC Information and China Marine go up and down completely randomly.
Pair Corralation between ZJBC Information and China Marine
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 0.93 times more return on investment than China Marine. However, ZJBC Information Technology is 1.08 times less risky than China Marine. It trades about 0.1 of its potential returns per unit of risk. China Marine Information is currently generating about -0.31 per unit of risk. If you would invest 217.00 in ZJBC Information Technology on August 28, 2024 and sell it today you would earn a total of 11.00 from holding ZJBC Information Technology or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZJBC Information Technology vs. China Marine Information
Performance |
| Timeline |
| ZJBC Information Tec |
| China Marine Information |
ZJBC Information and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJBC Information and China Marine
The main advantage of trading using opposite ZJBC Information and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.| ZJBC Information vs. China Petroleum Chemical | ZJBC Information vs. PetroChina Co Ltd | ZJBC Information vs. China State Construction | ZJBC Information vs. China Railway Group |
| China Marine vs. Cambricon Technologies Corp | China Marine vs. Loongson Technology Corp | China Marine vs. Chongqing Road Bridge | China Marine vs. Shenzhen Fortune Trend |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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