Correlation Between Zhejiang Construction and Hunan Mendale
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By analyzing existing cross correlation between Zhejiang Construction Investment and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Zhejiang Construction and Hunan Mendale 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 Construction with a short position of Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Hunan Mendale.
Diversification Opportunities for Zhejiang Construction and Hunan Mendale
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Hunan is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile and Zhejiang Construction 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 Construction Investment are associated (or correlated) with Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Hunan Mendale go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Hunan Mendale
Assuming the 90 days trading horizon Zhejiang Construction is expected to generate 12.8 times less return on investment than Hunan Mendale. But when comparing it to its historical volatility, Zhejiang Construction Investment is 1.17 times less risky than Hunan Mendale. It trades about 0.0 of its potential returns per unit of risk. Hunan Mendale Hometextile is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 248.00 in Hunan Mendale Hometextile on November 5, 2024 and sell it today you would earn a total of 61.00 from holding Hunan Mendale Hometextile or generate 24.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Zhejiang Construction |
| Hunan Mendale Hometextile |
Zhejiang Construction and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Hunan Mendale
The main advantage of trading using opposite Zhejiang Construction and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.| Zhejiang Construction vs. Weihai Honglin Electronic | Zhejiang Construction vs. Masterwork Machinery | Zhejiang Construction vs. Qijing Machinery | Zhejiang Construction vs. Shenzhen Zhongzhuang Construction |
| Hunan Mendale vs. Dezhan HealthCare Co | Hunan Mendale vs. Anhui Gujing Distillery | Hunan Mendale vs. China Asset Management | Hunan Mendale vs. Heren Health 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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