Correlation Between Zhejiang Kingland and Wangneng Environment
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Wangneng Environment Co, you can compare the effects of market volatilities on Zhejiang Kingland and Wangneng Environment 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 Wangneng Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Wangneng Environment.
Diversification Opportunities for Zhejiang Kingland and Wangneng Environment
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Wangneng is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Wangneng Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wangneng Environment 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 Wangneng Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wangneng Environment has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Wangneng Environment go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Wangneng Environment
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 1.38 times more return on investment than Wangneng Environment. However, Zhejiang Kingland is 1.38 times more volatile than Wangneng Environment Co. It trades about 0.0 of its potential returns per unit of risk. Wangneng Environment Co is currently generating about -0.02 per unit of risk. If you would invest 618.00 in Zhejiang Kingland Pipeline on October 16, 2024 and sell it today you would lose (55.00) from holding Zhejiang Kingland Pipeline or give up 8.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Wangneng Environment Co
Performance |
| Timeline |
| Zhejiang Kingland |
| Wangneng Environment |
Zhejiang Kingland and Wangneng Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Wangneng Environment
The main advantage of trading using opposite Zhejiang Kingland and Wangneng Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Wangneng Environment 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 Wangneng Environment will offset losses from the drop in Wangneng Environment's long position.| Zhejiang Kingland vs. Ziel Home Furnishing | Zhejiang Kingland vs. Shandong Homey Aquatic | Zhejiang Kingland vs. Markor International Home | Zhejiang Kingland vs. Hunan Mendale Hometextile |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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