Correlation Between Chenzhou Jingui and Zoomlion Heavy
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Chenzhou Jingui and Zoomlion Heavy 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 Chenzhou Jingui with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Zoomlion Heavy.
Diversification Opportunities for Chenzhou Jingui and Zoomlion Heavy
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chenzhou and Zoomlion is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and Chenzhou Jingui 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 Chenzhou Jingui Silver are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Zoomlion Heavy
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to under-perform the Zoomlion Heavy. But the stock apears to be less risky and, when comparing its historical volatility, Chenzhou Jingui Silver is 1.22 times less risky than Zoomlion Heavy. The stock trades about -0.03 of its potential returns per unit of risk. The Zoomlion Heavy Industry is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 717.00 in Zoomlion Heavy Industry on October 30, 2024 and sell it today you would earn a total of 15.00 from holding Zoomlion Heavy Industry or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Zoomlion Heavy Industry
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Zoomlion Heavy Industry |
Chenzhou Jingui and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Zoomlion Heavy
The main advantage of trading using opposite Chenzhou Jingui and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.| Chenzhou Jingui vs. Shenzhen Zhongzhuang Construction | Chenzhou Jingui vs. Jiangsu Phoenix Publishing | Chenzhou Jingui vs. Shaanxi Construction Machinery | Chenzhou Jingui vs. Changjiang Publishing Media |
| Zoomlion Heavy vs. Gan Yuan Foods | Zoomlion Heavy vs. Jiamei Food Packaging | Zoomlion Heavy vs. Shenzhen Noposion Agrochemicals | Zoomlion Heavy vs. Bus Online 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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