Correlation Between Rongsheng Petrochemical and Zhejiang Juhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Rongsheng Petrochemical Co and Zhejiang Juhua Co, you can compare the effects of market volatilities on Rongsheng Petrochemical and Zhejiang Juhua 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 Rongsheng Petrochemical with a short position of Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongsheng Petrochemical and Zhejiang Juhua.
Diversification Opportunities for Rongsheng Petrochemical and Zhejiang Juhua
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rongsheng and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Rongsheng Petrochemical Co and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua and Rongsheng Petrochemical 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 Rongsheng Petrochemical Co are associated (or correlated) with Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Rongsheng Petrochemical i.e., Rongsheng Petrochemical and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Rongsheng Petrochemical and Zhejiang Juhua
Assuming the 90 days trading horizon Rongsheng Petrochemical Co is expected to under-perform the Zhejiang Juhua. But the stock apears to be less risky and, when comparing its historical volatility, Rongsheng Petrochemical Co is 1.44 times less risky than Zhejiang Juhua. The stock trades about -0.03 of its potential returns per unit of risk. The Zhejiang Juhua Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,058 in Zhejiang Juhua Co on August 29, 2024 and sell it today you would earn a total of 43.00 from holding Zhejiang Juhua Co or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rongsheng Petrochemical Co vs. Zhejiang Juhua Co
Performance |
| Timeline |
| Rongsheng Petrochemical |
| Zhejiang Juhua |
Rongsheng Petrochemical and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongsheng Petrochemical and Zhejiang Juhua
The main advantage of trading using opposite Rongsheng Petrochemical and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongsheng Petrochemical position performs unexpectedly, Zhejiang Juhua 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 Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Rongsheng Petrochemical vs. Zijin Mining Group | Rongsheng Petrochemical vs. Wanhua Chemical Group | Rongsheng Petrochemical vs. Baoshan Iron Steel | Rongsheng Petrochemical vs. Shandong Gold Mining |
| Zhejiang Juhua vs. Guangzhou Dongfang Hotel | Zhejiang Juhua vs. Silkroad Visual Technology | Zhejiang Juhua vs. Hainan Airlines Co | Zhejiang Juhua vs. HanS Laser Tech |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |