Correlation Between Xilong Chemical and Zhejiang JIULI
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By analyzing existing cross correlation between Xilong Chemical Co and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on Xilong Chemical and Zhejiang JIULI 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 Xilong Chemical with a short position of Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Zhejiang JIULI.
Diversification Opportunities for Xilong Chemical and Zhejiang JIULI
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xilong and Zhejiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi and Xilong Chemical 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 Xilong Chemical Co are associated (or correlated) with Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of Xilong Chemical i.e., Xilong Chemical and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between Xilong Chemical and Zhejiang JIULI
Assuming the 90 days trading horizon Xilong Chemical Co is expected to under-perform the Zhejiang JIULI. In addition to that, Xilong Chemical is 1.74 times more volatile than Zhejiang JIULI Hi tech. It trades about 0.0 of its total potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.06 per unit of volatility. If you would invest 1,877 in Zhejiang JIULI Hi tech on October 18, 2024 and sell it today you would earn a total of 508.00 from holding Zhejiang JIULI Hi tech or generate 27.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Xilong Chemical Co vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| Xilong Chemical |
| Zhejiang JIULI Hi |
Xilong Chemical and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Zhejiang JIULI
The main advantage of trading using opposite Xilong Chemical and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical position performs unexpectedly, Zhejiang JIULI 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 JIULI will offset losses from the drop in Zhejiang JIULI's long position.| Xilong Chemical vs. Beijing Kaiwen Education | Xilong Chemical vs. Xinhua Winshare Publishing | Xilong Chemical vs. Duzhe Publishing Media | Xilong Chemical vs. Hangzhou Pinming Software |
| Zhejiang JIULI vs. Cansino Biologics | Zhejiang JIULI vs. Runjian Communication Co | Zhejiang JIULI vs. Dareway Software Co | Zhejiang JIULI vs. Beijing Bewinner Communications |
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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