Correlation Between Zhejiang Kingland and ADAMA
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and ADAMA, you can compare the effects of market volatilities on Zhejiang Kingland and ADAMA 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 Kingland with a short position of ADAMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and ADAMA.
Diversification Opportunities for Zhejiang Kingland and ADAMA
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and ADAMA is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and ADAMA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADAMA and Zhejiang Kingland 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 Kingland Pipeline are associated (or correlated) with ADAMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADAMA has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and ADAMA go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and ADAMA
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.72 times more return on investment than ADAMA. However, Zhejiang Kingland Pipeline is 1.39 times less risky than ADAMA. It trades about 0.11 of its potential returns per unit of risk. ADAMA is currently generating about -0.05 per unit of risk. If you would invest 621.00 in Zhejiang Kingland Pipeline on September 3, 2024 and sell it today you would earn a total of 18.00 from holding Zhejiang Kingland Pipeline or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. ADAMA
Performance |
| Timeline |
| Zhejiang Kingland |
| ADAMA |
Zhejiang Kingland and ADAMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and ADAMA
The main advantage of trading using opposite Zhejiang Kingland and ADAMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, ADAMA 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 ADAMA will offset losses from the drop in ADAMA's long position.| Zhejiang Kingland vs. Gansu Jiu Steel | Zhejiang Kingland vs. Ming Yang Smart | Zhejiang Kingland vs. Aba Chemicals Corp | Zhejiang Kingland vs. Loctek Ergonomic Technology |
| ADAMA vs. Quectel Wireless Solutions | ADAMA vs. Zhejiang Yayi Metal | ADAMA vs. Zhejiang Publishing Media | ADAMA vs. Ye Chiu Metal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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