Correlation Between Zhejiang Kingland and Zhejiang Xiantong
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Zhejiang Xiantong RubberPlastic, you can compare the effects of market volatilities on Zhejiang Kingland and Zhejiang Xiantong 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 Xiantong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Zhejiang Xiantong.
Diversification Opportunities for Zhejiang Kingland and Zhejiang Xiantong
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Zhejiang is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Zhejiang Xiantong RubberPlasti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Xiantong 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 Xiantong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Xiantong has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Zhejiang Xiantong go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Zhejiang Xiantong
Assuming the 90 days trading horizon Zhejiang Kingland is expected to generate 2.47 times less return on investment than Zhejiang Xiantong. But when comparing it to its historical volatility, Zhejiang Kingland Pipeline is 1.5 times less risky than Zhejiang Xiantong. It trades about 0.09 of its potential returns per unit of risk. Zhejiang Xiantong RubberPlastic is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,325 in Zhejiang Xiantong RubberPlastic on November 3, 2024 and sell it today you would earn a total of 52.00 from holding Zhejiang Xiantong RubberPlastic or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Zhejiang Xiantong RubberPlasti
Performance |
| Timeline |
| Zhejiang Kingland |
| Zhejiang Xiantong |
Zhejiang Kingland and Zhejiang Xiantong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Zhejiang Xiantong
The main advantage of trading using opposite Zhejiang Kingland and Zhejiang Xiantong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Zhejiang Xiantong 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 Xiantong will offset losses from the drop in Zhejiang Xiantong'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 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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