Correlation Between Zoje Resources and Changjiang Publishing
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By analyzing existing cross correlation between Zoje Resources Investment and Changjiang Publishing Media, you can compare the effects of market volatilities on Zoje Resources and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Changjiang Publishing.
Diversification Opportunities for Zoje Resources and Changjiang Publishing
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zoje and Changjiang is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Zoje Resources i.e., Zoje Resources and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Zoje Resources and Changjiang Publishing
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.52 times more return on investment than Changjiang Publishing. However, Zoje Resources is 1.52 times more volatile than Changjiang Publishing Media. It trades about 0.07 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.03 per unit of risk. If you would invest 109.00 in Zoje Resources Investment on August 29, 2024 and sell it today you would earn a total of 131.00 from holding Zoje Resources Investment or generate 120.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Changjiang Publishing Media
Performance |
| Timeline |
| Zoje Resources Investment |
| Changjiang Publishing |
Zoje Resources and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Changjiang Publishing
The main advantage of trading using opposite Zoje Resources and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Zoje Resources vs. Biwin Storage Technology | Zoje Resources vs. PetroChina Co Ltd | Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. China Construction Bank |
| Changjiang Publishing vs. China State Construction | Changjiang Publishing vs. Huafa Industrial Co | Changjiang Publishing vs. China International Capital | Changjiang Publishing vs. Kweichow Moutai 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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