Correlation Between Zhejiang JIULI and Super Dragon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Zhejiang JIULI and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Super Dragon.
Diversification Opportunities for Zhejiang JIULI and Super Dragon
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Super is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Super Dragon go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Super Dragon
Assuming the 90 days trading horizon Zhejiang JIULI is expected to generate 1.68 times less return on investment than Super Dragon. But when comparing it to its historical volatility, Zhejiang JIULI Hi tech is 1.66 times less risky than Super Dragon. It trades about 0.17 of its potential returns per unit of risk. Super Dragon Engineering Plastics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,659 in Super Dragon Engineering Plastics on September 13, 2024 and sell it today you would earn a total of 442.00 from holding Super Dragon Engineering Plastics or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Super Dragon Engineering Plast
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Super Dragon Enginee |
Zhejiang JIULI and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Super Dragon
The main advantage of trading using opposite Zhejiang JIULI and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| Zhejiang JIULI vs. Zijin Mining Group | Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Baoshan Iron Steel | Zhejiang JIULI vs. Shandong Gold Mining |
| Super Dragon vs. Zhejiang JIULI Hi tech | Super Dragon vs. Qilu Bank Co | Super Dragon vs. Kuang Chi Technologies | Super Dragon vs. Guangdong Shenglu Telecommunication |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |