Correlation Between Zoje Resources and Guangdong Qunxing
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By analyzing existing cross correlation between Zoje Resources Investment and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Zoje Resources and Guangdong Qunxing 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 Zoje Resources with a short position of Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Guangdong Qunxing.
Diversification Opportunities for Zoje Resources and Guangdong Qunxing
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoje and Guangdong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys and Zoje Resources 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 Zoje Resources Investment are associated (or correlated) with Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Zoje Resources i.e., Zoje Resources and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Zoje Resources and Guangdong Qunxing
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 0.95 times more return on investment than Guangdong Qunxing. However, Zoje Resources Investment is 1.05 times less risky than Guangdong Qunxing. It trades about -0.07 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about -0.1 per unit of risk. If you would invest 252.00 in Zoje Resources Investment on November 6, 2024 and sell it today you would lose (10.00) from holding Zoje Resources Investment or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Zoje Resources Investment |
| Guangdong Qunxing Toys |
Zoje Resources and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Guangdong Qunxing
The main advantage of trading using opposite Zoje Resources and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Zoje Resources vs. Mango Excellent Media | Zoje Resources vs. Guangdong Ellington Electronics | Zoje Resources vs. Weihai Honglin Electronic | Zoje Resources vs. Beingmate Baby Child |
| Guangdong Qunxing vs. Liuzhou Chemical Industry | Guangdong Qunxing vs. Namchow Food Group | Guangdong Qunxing vs. Xinxiang Chemical Fiber | Guangdong Qunxing vs. Zhejiang Huatong Meat |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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