Correlation Between Zoje Resources and Beijing Shanghai
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By analyzing existing cross correlation between Zoje Resources Investment and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Zoje Resources and Beijing Shanghai 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 Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Beijing Shanghai.
Diversification Opportunities for Zoje Resources and Beijing Shanghai
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoje and Beijing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High 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 Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Zoje Resources i.e., Zoje Resources and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Zoje Resources and Beijing Shanghai
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 2.55 times more return on investment than Beijing Shanghai. However, Zoje Resources is 2.55 times more volatile than Beijing Shanghai High Speed. It trades about 0.25 of its potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.3 per unit of risk. If you would invest 273.00 in Zoje Resources Investment on September 12, 2024 and sell it today you would earn a total of 68.00 from holding Zoje Resources Investment or generate 24.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| Zoje Resources Investment |
| Beijing Shanghai High |
Zoje Resources and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Beijing Shanghai
The main advantage of trading using opposite Zoje Resources and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Bank of China | Zoje Resources vs. PetroChina Co Ltd |
| Beijing Shanghai vs. China Railway Construction | Beijing Shanghai vs. Qijing Machinery | Beijing Shanghai vs. Sichuan Yahua Industrial | Beijing Shanghai vs. Huitong Construction Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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