Correlation Between Zhejiang Kingland and Chinese Universe
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Chinese Universe Publishing, you can compare the effects of market volatilities on Zhejiang Kingland and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Chinese Universe.
Diversification Opportunities for Zhejiang Kingland and Chinese Universe
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Chinese is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Chinese Universe go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Chinese Universe
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.64 times more return on investment than Chinese Universe. However, Zhejiang Kingland Pipeline is 1.57 times less risky than Chinese Universe. It trades about -0.14 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.32 per unit of risk. If you would invest 653.00 in Zhejiang Kingland Pipeline on August 28, 2024 and sell it today you would lose (33.00) from holding Zhejiang Kingland Pipeline or give up 5.05% 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. Chinese Universe Publishing
Performance |
| Timeline |
| Zhejiang Kingland |
| Chinese Universe Pub |
Zhejiang Kingland and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Chinese Universe
The main advantage of trading using opposite Zhejiang Kingland and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Zhejiang Kingland vs. HaiXin Foods Co | Zhejiang Kingland vs. Juewei Food Co | Zhejiang Kingland vs. Gan Yuan Foods | Zhejiang Kingland vs. Great Sun Foods Co |
| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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