Correlation Between Zhejiang JIULI and FSPG Hi
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and FSPG Hi Tech Co, you can compare the effects of market volatilities on Zhejiang JIULI and FSPG Hi 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 FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and FSPG Hi.
Diversification Opportunities for Zhejiang JIULI and FSPG Hi
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and FSPG is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and FSPG Hi go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and FSPG Hi
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.42 times more return on investment than FSPG Hi. However, Zhejiang JIULI Hi tech is 2.38 times less risky than FSPG Hi. It trades about 0.06 of its potential returns per unit of risk. FSPG Hi Tech Co is currently generating about -0.3 per unit of risk. If you would invest 2,360 in Zhejiang JIULI Hi tech on October 26, 2024 and sell it today you would earn a total of 75.00 from holding Zhejiang JIULI Hi tech or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| FSPG Hi Tech |
Zhejiang JIULI and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and FSPG Hi
The main advantage of trading using opposite Zhejiang JIULI and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Zhejiang JIULI vs. Shuhua Sports Co | Zhejiang JIULI vs. Shenzhen AV Display Co | Zhejiang JIULI vs. Easyhome New Retail | Zhejiang JIULI vs. Shanghai Yaoji Playing |
| FSPG Hi vs. Ye Chiu Metal | FSPG Hi vs. Zhongrun Resources Investment | FSPG Hi vs. Jiaozuo Wanfang Aluminum | FSPG Hi vs. Zoje Resources Investment |
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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