Correlation Between Zhejiang Qianjiang and Huitong Construction
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Huitong Construction Group, you can compare the effects of market volatilities on Zhejiang Qianjiang and Huitong Construction 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 Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Huitong Construction.
Diversification Opportunities for Zhejiang Qianjiang and Huitong Construction
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and Huitong is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong Construction 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 Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Huitong Construction go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Huitong Construction
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to generate 1.11 times more return on investment than Huitong Construction. However, Zhejiang Qianjiang is 1.11 times more volatile than Huitong Construction Group. It trades about 0.0 of its potential returns per unit of risk. Huitong Construction Group is currently generating about -0.02 per unit of risk. If you would invest 2,328 in Zhejiang Qianjiang Motorcycle on November 27, 2024 and sell it today you would lose (438.00) from holding Zhejiang Qianjiang Motorcycle or give up 18.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Huitong Construction Group
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Huitong Construction |
Zhejiang Qianjiang and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Huitong Construction
The main advantage of trading using opposite Zhejiang Qianjiang and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, Huitong Construction 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 Huitong Construction will offset losses from the drop in Huitong Construction's long position.| Zhejiang Qianjiang vs. Vohringer Home Technology | Zhejiang Qianjiang vs. Ningbo Homelink Eco iTech | Zhejiang Qianjiang vs. Xilinmen Furniture Co | Zhejiang Qianjiang vs. Winner Medical Co |
| Huitong Construction vs. PKU HealthCare Corp | Huitong Construction vs. Humanwell Healthcare Group | Huitong Construction vs. Guangzhou Seagull Kitchen | Huitong Construction vs. SSAW Hotels Resorts |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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