Correlation Between Zhejiang JIULI and Anhui Huilong
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Zhejiang JIULI and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Anhui Huilong.
Diversification Opportunities for Zhejiang JIULI and Anhui Huilong
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Anhui is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Anhui Huilong go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Anhui Huilong
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.79 times more return on investment than Anhui Huilong. However, Zhejiang JIULI Hi tech is 1.27 times less risky than Anhui Huilong. It trades about 0.06 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.03 per unit of risk. If you would invest 1,581 in Zhejiang JIULI Hi tech on November 1, 2024 and sell it today you would earn a total of 899.00 from holding Zhejiang JIULI Hi tech or generate 56.86% 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. Anhui Huilong Agricultural
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Anhui Huilong Agricu |
Zhejiang JIULI and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Anhui Huilong
The main advantage of trading using opposite Zhejiang JIULI and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| Zhejiang JIULI vs. Uroica Mining Safety | Zhejiang JIULI vs. Shenyang Blue Silver | Zhejiang JIULI vs. Lier Chemical Co | Zhejiang JIULI vs. Guangdong Silvere Sci |
| Anhui Huilong vs. Harbin Hatou Investment | Anhui Huilong vs. Shenzhen Centralcon Investment | Anhui Huilong vs. Zhejiang JIULI Hi tech | Anhui Huilong vs. Jilin Jlu Communication |
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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