Correlation Between Zhejiang JIULI and Shandong Polymer
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Zhejiang JIULI and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Shandong Polymer.
Diversification Opportunities for Zhejiang JIULI and Shandong Polymer
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Shandong is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Shandong Polymer go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Shandong Polymer
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.54 times more return on investment than Shandong Polymer. However, Zhejiang JIULI Hi tech is 1.87 times less risky than Shandong Polymer. It trades about 0.02 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about -0.06 per unit of risk. If you would invest 2,456 in Zhejiang JIULI Hi tech on October 30, 2024 and sell it today you would earn a total of 24.00 from holding Zhejiang JIULI Hi tech or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Shandong Polymer Bio |
Zhejiang JIULI and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Shandong Polymer
The main advantage of trading using opposite Zhejiang JIULI and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's long position.| Zhejiang JIULI vs. Beijing Mainstreets Investment | Zhejiang JIULI vs. Harvest Fund Management | Zhejiang JIULI vs. Zhongrun Resources Investment | Zhejiang JIULI vs. Innovative Medical Management |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Shandong Gold Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |