Correlation Between Zhejiang Qianjiang and Sobute New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Sobute New Materials, you can compare the effects of market volatilities on Zhejiang Qianjiang and Sobute New 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 Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Sobute New.
Diversification Opportunities for Zhejiang Qianjiang and Sobute New
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Sobute is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New Materials 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 Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Sobute New go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Sobute New
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to generate 1.24 times more return on investment than Sobute New. However, Zhejiang Qianjiang is 1.24 times more volatile than Sobute New Materials. It trades about 0.04 of its potential returns per unit of risk. Sobute New Materials is currently generating about -0.04 per unit of risk. If you would invest 1,383 in Zhejiang Qianjiang Motorcycle on September 14, 2024 and sell it today you would earn a total of 292.00 from holding Zhejiang Qianjiang Motorcycle or generate 21.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Sobute New Materials
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Sobute New Materials |
Zhejiang Qianjiang and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Sobute New
The main advantage of trading using opposite Zhejiang Qianjiang and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New's long position.| Zhejiang Qianjiang vs. Lutian Machinery Co | Zhejiang Qianjiang vs. China Longyuan Power | Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. Bank of China |
| Sobute New vs. Guocheng Mining Co | Sobute New vs. Ningbo Thermal Power | Sobute New vs. Zhejiang Qianjiang Motorcycle | Sobute New vs. Minmetals Capital Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |