Correlation Between Zhongshan Broad and Tonghua Grape
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By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and Tonghua Grape Wine, you can compare the effects of market volatilities on Zhongshan Broad and Tonghua Grape 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 Zhongshan Broad with a short position of Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad and Tonghua Grape.
Diversification Opportunities for Zhongshan Broad and Tonghua Grape
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongshan and Tonghua is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine and Zhongshan Broad 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 Zhongshan Broad Ocean Motor are associated (or correlated) with Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Zhongshan Broad i.e., Zhongshan Broad and Tonghua Grape go up and down completely randomly.
Pair Corralation between Zhongshan Broad and Tonghua Grape
Assuming the 90 days trading horizon Zhongshan Broad Ocean Motor is expected to generate 0.76 times more return on investment than Tonghua Grape. However, Zhongshan Broad Ocean Motor is 1.32 times less risky than Tonghua Grape. It trades about 0.02 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.03 per unit of risk. If you would invest 522.00 in Zhongshan Broad Ocean Motor on October 28, 2024 and sell it today you would earn a total of 65.00 from holding Zhongshan Broad Ocean Motor or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. Tonghua Grape Wine
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| Tonghua Grape Wine |
Zhongshan Broad and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad and Tonghua Grape
The main advantage of trading using opposite Zhongshan Broad and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| Zhongshan Broad vs. Lier Chemical Co | Zhongshan Broad vs. Shandong Polymer Biochemicals | Zhongshan Broad vs. Maoming Petro Chemical Shihua | Zhongshan Broad vs. Lianhe Chemical Technology |
| Tonghua Grape vs. Kuang Chi Technologies | Tonghua Grape vs. Huaxia Fund Management | Tonghua Grape vs. Quectel Wireless Solutions | Tonghua Grape vs. Zhongshan Public Utilities |
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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