Correlation Between Zhejiang Kingland and Zhejiang Construction
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Zhejiang Construction Investment, you can compare the effects of market volatilities on Zhejiang Kingland and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Zhejiang Construction.
Diversification Opportunities for Zhejiang Kingland and Zhejiang Construction
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Zhejiang is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Zhejiang Construction
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.65 times more return on investment than Zhejiang Construction. However, Zhejiang Kingland Pipeline is 1.55 times less risky than Zhejiang Construction. It trades about -0.17 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.27 per unit of risk. If you would invest 642.00 in Zhejiang Kingland Pipeline on November 3, 2024 and sell it today you would lose (59.00) from holding Zhejiang Kingland Pipeline or give up 9.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Zhejiang Kingland |
| Zhejiang Construction |
Zhejiang Kingland and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Zhejiang Construction
The main advantage of trading using opposite Zhejiang Kingland and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Zhejiang Kingland vs. Cicc Fund Management | Zhejiang Kingland vs. JCHX Mining Management | Zhejiang Kingland vs. Fuda Alloy Materials | Zhejiang Kingland vs. AVIC Fund Management |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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