Correlation Between Shenzhen Noposion and Zhejiang Qianjiang
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Shenzhen Noposion and Zhejiang Qianjiang 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 Shenzhen Noposion with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Zhejiang Qianjiang.
Diversification Opportunities for Shenzhen Noposion and Zhejiang Qianjiang
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Zhejiang Qianjiang
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.41 times more return on investment than Zhejiang Qianjiang. However, Shenzhen Noposion is 1.41 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.35 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about -0.21 per unit of risk. If you would invest 934.00 in Shenzhen Noposion Agrochemicals on September 13, 2024 and sell it today you would earn a total of 200.00 from holding Shenzhen Noposion Agrochemicals or generate 21.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Shenzhen Noposion |
| Zhejiang Qianjiang |
Shenzhen Noposion and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Zhejiang Qianjiang
The main advantage of trading using opposite Shenzhen Noposion and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Zhejiang Qianjiang 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 Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
| Zhejiang Qianjiang vs. Xiangyu Medical Co | Zhejiang Qianjiang vs. Shenzhen Silver Basis | Zhejiang Qianjiang vs. Cowealth Medical China | Zhejiang Qianjiang vs. Shenzhen Noposion Agrochemicals |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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