Correlation Between Zhejiang JIULI and Gan Yuan
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Gan Yuan Foods, you can compare the effects of market volatilities on Zhejiang JIULI and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Gan Yuan.
Diversification Opportunities for Zhejiang JIULI and Gan Yuan
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and Gan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Gan Yuan go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Gan Yuan
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.37 times more return on investment than Gan Yuan. However, Zhejiang JIULI Hi tech is 2.72 times less risky than Gan Yuan. It trades about 0.06 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about -0.13 per unit of risk. If you would invest 2,344 in Zhejiang JIULI Hi tech on November 20, 2024 and sell it today you would earn a total of 51.00 from holding Zhejiang JIULI Hi tech or generate 2.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Gan Yuan Foods
Performance |
Timeline |
Zhejiang JIULI Hi |
Gan Yuan Foods |
Zhejiang JIULI and Gan Yuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang JIULI and Gan Yuan
The main advantage of trading using opposite Zhejiang JIULI and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.Zhejiang JIULI vs. XCMG Construction Machinery | ||
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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