Correlation Between Zhejiang JIULI and Liuzhou Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Zhejiang JIULI and Liuzhou 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Liuzhou Chemical.
Diversification Opportunities for Zhejiang JIULI and Liuzhou Chemical
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Liuzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Liuzhou Chemical
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to under-perform the Liuzhou Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang JIULI Hi tech is 1.24 times less risky than Liuzhou Chemical. The stock trades about 0.0 of its potential returns per unit of risk. The Liuzhou Chemical Industry is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 239.00 in Liuzhou Chemical Industry on October 13, 2024 and sell it today you would earn a total of 41.00 from holding Liuzhou Chemical Industry or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Liuzhou Chemical Industry
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Liuzhou Chemical Industry |
Zhejiang JIULI and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Liuzhou Chemical
The main advantage of trading using opposite Zhejiang JIULI and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Liuzhou 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| Zhejiang JIULI vs. YiDong Electronics Technology | Zhejiang JIULI vs. Eastroc Beverage Group | Zhejiang JIULI vs. Jiangyin Jianghua Microelectronics | Zhejiang JIULI vs. Beijing Jiaman Dress |
| Liuzhou Chemical vs. Tianjin Hi Tech Development | Liuzhou Chemical vs. Shanghai Shibei Hi Tech | Liuzhou Chemical vs. China Publishing Media | Liuzhou Chemical vs. Zhejiang JIULI Hi tech |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |