Correlation Between Zhejiang Qianjiang and Iflytek
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Iflytek Co, you can compare the effects of market volatilities on Zhejiang Qianjiang and Iflytek 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 Zhejiang Qianjiang with a short position of Iflytek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Iflytek.
Diversification Opportunities for Zhejiang Qianjiang and Iflytek
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Iflytek is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and Iflytek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iflytek and Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle are associated (or correlated) with Iflytek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iflytek has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Iflytek go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Iflytek
Assuming the 90 days trading horizon Zhejiang Qianjiang is expected to generate 3.6 times less return on investment than Iflytek. But when comparing it to its historical volatility, Zhejiang Qianjiang Motorcycle is 1.11 times less risky than Iflytek. It trades about 0.02 of its potential returns per unit of risk. Iflytek Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,283 in Iflytek Co on September 12, 2024 and sell it today you would earn a total of 2,168 from holding Iflytek Co or generate 66.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Iflytek Co
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Iflytek |
Zhejiang Qianjiang and Iflytek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Iflytek
The main advantage of trading using opposite Zhejiang Qianjiang and Iflytek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, Iflytek 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 Iflytek will offset losses from the drop in Iflytek's long position.| Zhejiang Qianjiang vs. Lutian Machinery Co | Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. Bank of China | Zhejiang Qianjiang vs. Gansu Jiu Steel |
| Iflytek vs. Chongqing Changan Automobile | Iflytek vs. Jinhui Mining Co | Iflytek vs. Zhejiang Qianjiang Motorcycle | Iflytek vs. Pengxin International Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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