Correlation Between Zhejiang JIULI and Tengda Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Tengda Construction Group, you can compare the effects of market volatilities on Zhejiang JIULI and Tengda Construction 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 Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Tengda Construction.
Diversification Opportunities for Zhejiang JIULI and Tengda Construction
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Tengda is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction 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 Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Tengda Construction go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Tengda Construction
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.5 times more return on investment than Tengda Construction. However, Zhejiang JIULI Hi tech is 2.0 times less risky than Tengda Construction. It trades about -0.32 of its potential returns per unit of risk. Tengda Construction Group is currently generating about -0.36 per unit of risk. If you would invest 2,470 in Zhejiang JIULI Hi tech on October 11, 2024 and sell it today you would lose (183.00) from holding Zhejiang JIULI Hi tech or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Tengda Construction Group
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Tengda Construction |
Zhejiang JIULI and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Tengda Construction
The main advantage of trading using opposite Zhejiang JIULI and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Zhejiang JIULI vs. Shenzhen Noposion Agrochemicals | Zhejiang JIULI vs. Industrial Bank Co | Zhejiang JIULI vs. GRG Banking Equipment | Zhejiang JIULI vs. China Everbright Bank |
| Tengda Construction vs. Zhejiang JIULI Hi tech | Tengda Construction vs. Wonders Information | Tengda Construction vs. Biwin Storage Technology | Tengda Construction vs. Tianjin Hi Tech Development |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |