Correlation Between Zoje Resources and Hangzhou Minsheng
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By analyzing existing cross correlation between Zoje Resources Investment and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Zoje Resources and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Hangzhou Minsheng.
Diversification Opportunities for Zoje Resources and Hangzhou Minsheng
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoje and Hangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Zoje Resources i.e., Zoje Resources and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Zoje Resources and Hangzhou Minsheng
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.15 times more return on investment than Hangzhou Minsheng. However, Zoje Resources is 1.15 times more volatile than Hangzhou Minsheng Healthcare. It trades about 0.08 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.01 per unit of risk. If you would invest 150.00 in Zoje Resources Investment on September 4, 2024 and sell it today you would earn a total of 130.00 from holding Zoje Resources Investment or generate 86.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Zoje Resources Investment |
| Hangzhou Minsheng |
Zoje Resources and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Hangzhou Minsheng
The main advantage of trading using opposite Zoje Resources and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Zoje Resources vs. Chengdu Kanghua Biological | Zoje Resources vs. Beijing Wantai Biological | Zoje Resources vs. Suzhou Novoprotein Scientific | Zoje Resources vs. Aluminum Corp of |
| Hangzhou Minsheng vs. Chengdu Xingrong Investment | Hangzhou Minsheng vs. Nexchip Semiconductor Corp | Hangzhou Minsheng vs. Zoje Resources Investment | Hangzhou Minsheng vs. Guangdong Marubi Biotechnology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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