Correlation Between Zhejiang Kingland and Jizhong Energy
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Jizhong Energy Resources, you can compare the effects of market volatilities on Zhejiang Kingland and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Jizhong Energy.
Diversification Opportunities for Zhejiang Kingland and Jizhong Energy
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Jizhong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Jizhong Energy go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Jizhong Energy
Assuming the 90 days trading horizon Zhejiang Kingland is expected to generate 1.7 times less return on investment than Jizhong Energy. But when comparing it to its historical volatility, Zhejiang Kingland Pipeline is 1.03 times less risky than Jizhong Energy. It trades about 0.09 of its potential returns per unit of risk. Jizhong Energy Resources is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 593.00 in Jizhong Energy Resources on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Jizhong Energy Resources or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Jizhong Energy Resources
Performance |
| Timeline |
| Zhejiang Kingland |
| Jizhong Energy Resources |
Zhejiang Kingland and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Jizhong Energy
The main advantage of trading using opposite Zhejiang Kingland and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| Zhejiang Kingland vs. Cangzhou Mingzhu Plastic | Zhejiang Kingland vs. Ningxia Building Materials | Zhejiang Kingland vs. Hangzhou Gaoxin Rubber | Zhejiang Kingland vs. Songz Automobile Air |
| Jizhong Energy vs. Western Mining Co | Jizhong Energy vs. Western Metal Materials | Jizhong Energy vs. Qingdao Choho Industrial | Jizhong Energy vs. Pengxin International Mining |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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