Correlation Between Zhejiang Kingland and Fuda Alloy
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Fuda Alloy Materials, you can compare the effects of market volatilities on Zhejiang Kingland and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Fuda Alloy.
Diversification Opportunities for Zhejiang Kingland and Fuda Alloy
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Fuda is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Fuda Alloy go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Fuda Alloy
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the Fuda Alloy. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Kingland Pipeline is 2.76 times less risky than Fuda Alloy. The stock trades about -0.41 of its potential returns per unit of risk. The Fuda Alloy Materials is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,361 in Fuda Alloy Materials on October 16, 2024 and sell it today you would earn a total of 5.00 from holding Fuda Alloy Materials or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Fuda Alloy Materials
Performance |
| Timeline |
| Zhejiang Kingland |
| Fuda Alloy Materials |
Zhejiang Kingland and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Fuda Alloy
The main advantage of trading using opposite Zhejiang Kingland and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Zhejiang Kingland vs. Winner Medical Co | Zhejiang Kingland vs. Touchstone International Medical | Zhejiang Kingland vs. Iat Automobile Technology | Zhejiang Kingland vs. Medprin Regenerative Medical |
| Fuda Alloy vs. Shenzhen MYS Environmental | Fuda Alloy vs. Tianjin Capital Environmental | Fuda Alloy vs. Anyang Iron Steel | Fuda Alloy vs. Lecron Energy Saving |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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