Correlation Between Zhejiang Qianjiang and Zhejiang Juhua
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Zhejiang Juhua Co, you can compare the effects of market volatilities on Zhejiang Qianjiang and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Zhejiang Juhua.
Diversification Opportunities for Zhejiang Qianjiang and Zhejiang Juhua
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Zhejiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Zhejiang Juhua
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to under-perform the Zhejiang Juhua. In addition to that, Zhejiang Qianjiang is 1.12 times more volatile than Zhejiang Juhua Co. It trades about -0.08 of its total potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.08 per unit of volatility. If you would invest 2,100 in Zhejiang Juhua Co on August 24, 2024 and sell it today you would earn a total of 73.00 from holding Zhejiang Juhua Co or generate 3.48% 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. Zhejiang Juhua Co
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Zhejiang Juhua |
Zhejiang Qianjiang and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Zhejiang Juhua
The main advantage of trading using opposite Zhejiang Qianjiang and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Zhejiang Qianjiang vs. Kweichow Moutai Co | Zhejiang Qianjiang vs. Contemporary Amperex Technology | Zhejiang Qianjiang vs. G bits Network Technology | Zhejiang Qianjiang vs. Beijing Roborock Technology |
| Zhejiang Juhua vs. Sinocat Environmental Technology | Zhejiang Juhua vs. Jinhui Liquor Co | Zhejiang Juhua vs. Zhejiang Qianjiang Motorcycle | Zhejiang Juhua vs. Beijing SPC Environment |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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