Correlation Between Zhejiang JIULI and Shanghai Shuixing
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Shanghai Shuixing Home, you can compare the effects of market volatilities on Zhejiang JIULI and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Shanghai Shuixing.
Diversification Opportunities for Zhejiang JIULI and Shanghai Shuixing
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Shanghai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Shanghai Shuixing
Assuming the 90 days trading horizon Zhejiang JIULI is expected to generate 3.06 times less return on investment than Shanghai Shuixing. But when comparing it to its historical volatility, Zhejiang JIULI Hi tech is 1.88 times less risky than Shanghai Shuixing. It trades about 0.06 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,317 in Shanghai Shuixing Home on October 15, 2024 and sell it today you would earn a total of 255.00 from holding Shanghai Shuixing Home or generate 19.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Shanghai Shuixing Home |
Zhejiang JIULI and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Shanghai Shuixing
The main advantage of trading using opposite Zhejiang JIULI and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Zhejiang JIULI vs. China Sports Industry | Zhejiang JIULI vs. Hainan Haiqi Transportation | Zhejiang JIULI vs. Jiangsu Broadcasting Cable | Zhejiang JIULI vs. Dazhong Transportation Group |
| Shanghai Shuixing vs. Henan Shuanghui Investment | Shanghai Shuixing vs. Tianshui Huatian Technology | Shanghai Shuixing vs. 360 Security Technology | Shanghai Shuixing vs. Luyin Investment Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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