Correlation Between Zhejiang JIULI and China Securities
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and China Securities 800, you can compare the effects of market volatilities on Zhejiang JIULI and China Securities 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 Zhejiang JIULI with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and China Securities.
Diversification Opportunities for Zhejiang JIULI and China Securities
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and China is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 and Zhejiang JIULI 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 Zhejiang JIULI Hi tech are associated (or correlated) with China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and China Securities go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and China Securities
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.89 times more return on investment than China Securities. However, Zhejiang JIULI Hi tech is 1.13 times less risky than China Securities. It trades about 0.13 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.1 per unit of risk. If you would invest 2,321 in Zhejiang JIULI Hi tech on October 18, 2024 and sell it today you would earn a total of 64.00 from holding Zhejiang JIULI Hi tech or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. China Securities 800
Performance |
| Timeline |
Zhejiang JIULI and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Zhejiang JIULI Hi tech
Pair trading matchups for Zhejiang JIULI
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Zhejiang JIULI and China Securities
The main advantage of trading using opposite Zhejiang JIULI and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Zhejiang JIULI vs. Hengdian Entertainment Co | Zhejiang JIULI vs. Thinkingdom Media Group | Zhejiang JIULI vs. Humanwell Healthcare Group | Zhejiang JIULI vs. Guangdong Jinma Entertainment |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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