Correlation Between ZJBC Information and Beken Corp
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By analyzing existing cross correlation between ZJBC Information Technology and Beken Corp, you can compare the effects of market volatilities on ZJBC Information and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Beken Corp.
Diversification Opportunities for ZJBC Information and Beken Corp
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZJBC and Beken is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of ZJBC Information i.e., ZJBC Information and Beken Corp go up and down completely randomly.
Pair Corralation between ZJBC Information and Beken Corp
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 0.94 times more return on investment than Beken Corp. However, ZJBC Information Technology is 1.06 times less risky than Beken Corp. It trades about 0.04 of its potential returns per unit of risk. Beken Corp is currently generating about 0.02 per unit of risk. If you would invest 194.00 in ZJBC Information Technology on September 26, 2024 and sell it today you would earn a total of 70.00 from holding ZJBC Information Technology or generate 36.08% 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. Beken Corp
Performance |
| Timeline |
| ZJBC Information Tec |
| Beken Corp |
ZJBC Information and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJBC Information and Beken Corp
The main advantage of trading using opposite ZJBC Information and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| ZJBC Information vs. GigaDevice SemiconductorBeiji | ZJBC Information vs. Healthcare Co | ZJBC Information vs. Everdisplay Optronics Shanghai | ZJBC Information vs. Semiconductor Manufacturing Electronics |
| Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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