Correlation Between Zhejiang JIULI and Xilong Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Xilong Chemical Co, you can compare the effects of market volatilities on Zhejiang JIULI and Xilong Chemical 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 Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Xilong Chemical.
Diversification Opportunities for Zhejiang JIULI and Xilong Chemical
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Xilong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong Chemical 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 Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Xilong Chemical go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Xilong Chemical
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.58 times more return on investment than Xilong Chemical. However, Zhejiang JIULI Hi tech is 1.74 times less risky than Xilong Chemical. It trades about 0.06 of its potential returns per unit of risk. Xilong Chemical Co is currently generating about 0.0 per unit of risk. If you would invest 1,877 in Zhejiang JIULI Hi tech on October 18, 2024 and sell it today you would earn a total of 508.00 from holding Zhejiang JIULI Hi tech or generate 27.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Xilong Chemical Co
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Xilong Chemical |
Zhejiang JIULI and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Xilong Chemical
The main advantage of trading using opposite Zhejiang JIULI and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Xilong Chemical 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 Xilong Chemical will offset losses from the drop in Xilong Chemical's long position.| Zhejiang JIULI vs. Cansino Biologics | Zhejiang JIULI vs. Runjian Communication Co | Zhejiang JIULI vs. Dareway Software Co | Zhejiang JIULI vs. Beijing Bewinner Communications |
| Xilong Chemical vs. Beijing Kaiwen Education | Xilong Chemical vs. Xinhua Winshare Publishing | Xilong Chemical vs. Duzhe Publishing Media | Xilong Chemical vs. Hangzhou Pinming Software |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |