Correlation Between Zhejiang JIULI and Shaanxi Broadcast
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Zhejiang JIULI and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Shaanxi Broadcast.
Diversification Opportunities for Zhejiang JIULI and Shaanxi Broadcast
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Shaanxi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Shaanxi Broadcast
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.67 times more return on investment than Shaanxi Broadcast. However, Zhejiang JIULI Hi tech is 1.5 times less risky than Shaanxi Broadcast. It trades about 0.21 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about 0.12 per unit of risk. If you would invest 2,258 in Zhejiang JIULI Hi tech on September 1, 2024 and sell it today you would earn a total of 198.00 from holding Zhejiang JIULI Hi tech or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Shaanxi Broadcast |
Zhejiang JIULI and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Shaanxi Broadcast
The main advantage of trading using opposite Zhejiang JIULI and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Zhejiang JIULI vs. Meinian Onehealth Healthcare | Zhejiang JIULI vs. Shenzhen Topway Video | Zhejiang JIULI vs. Sanbo Hospital Management | Zhejiang JIULI vs. Shenzhen MYS Environmental |
| Shaanxi Broadcast vs. Shanghai Jinfeng Wine | Shaanxi Broadcast vs. Kunwu Jiuding Investment | Shaanxi Broadcast vs. Sichuan Yahua Industrial | Shaanxi Broadcast vs. Qingdao Choho Industrial |
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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