Correlation Between Shenzhen Noposion and Zhejiang JIULI
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on Shenzhen Noposion and Zhejiang JIULI 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 JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Zhejiang JIULI.
Diversification Opportunities for Shenzhen Noposion and Zhejiang JIULI
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi 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 JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Zhejiang JIULI
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 3.24 times more return on investment than Zhejiang JIULI. However, Shenzhen Noposion is 3.24 times more volatile than Zhejiang JIULI Hi tech. It trades about -0.05 of its potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about -0.32 per unit of risk. If you would invest 1,071 in Shenzhen Noposion Agrochemicals on October 11, 2024 and sell it today you would lose (55.00) from holding Shenzhen Noposion Agrochemicals or give up 5.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| Shenzhen Noposion |
| Zhejiang JIULI Hi |
Shenzhen Noposion and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Zhejiang JIULI
The main advantage of trading using opposite Shenzhen Noposion and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Zhejiang JIULI 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 JIULI will offset losses from the drop in Zhejiang JIULI's long position.| Shenzhen Noposion vs. SSAW Hotels Resorts | Shenzhen Noposion vs. Zhengzhou Coal Mining | Shenzhen Noposion vs. BTG Hotels Group | Shenzhen Noposion vs. Shenzhen Silver Basis |
| Zhejiang JIULI vs. Shenzhen Noposion Agrochemicals | Zhejiang JIULI vs. Industrial Bank Co | Zhejiang JIULI vs. GRG Banking Equipment | Zhejiang JIULI vs. China Everbright Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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