Correlation Between Cangzhou Mingzhu and Zhejiang Construction
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By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Zhejiang Construction Investment, you can compare the effects of market volatilities on Cangzhou Mingzhu and Zhejiang Construction 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 Cangzhou Mingzhu with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Zhejiang Construction.
Diversification Opportunities for Cangzhou Mingzhu and Zhejiang Construction
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cangzhou and Zhejiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic are associated (or correlated) with Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Zhejiang Construction
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to generate 0.59 times more return on investment than Zhejiang Construction. However, Cangzhou Mingzhu Plastic is 1.7 times less risky than Zhejiang Construction. It trades about 0.05 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about 0.03 per unit of risk. If you would invest 339.00 in Cangzhou Mingzhu Plastic on September 1, 2024 and sell it today you would earn a total of 58.00 from holding Cangzhou Mingzhu Plastic or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.45% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Zhejiang Construction |
Cangzhou Mingzhu and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Zhejiang Construction
The main advantage of trading using opposite Cangzhou Mingzhu and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Cangzhou Mingzhu vs. Jilin Jlu Communication | Cangzhou Mingzhu vs. Shenzhen Kexin Communication | Cangzhou Mingzhu vs. Zhongtong Guomai Communication | Cangzhou Mingzhu vs. Gome Telecom Equipment |
| Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. China Construction Bank | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. Agricultural Bank of |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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