Correlation Between Zhejiang Construction and Chengdu Spaceon
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By analyzing existing cross correlation between Zhejiang Construction Investment and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Zhejiang Construction and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Chengdu Spaceon.
Diversification Opportunities for Zhejiang Construction and Chengdu Spaceon
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Chengdu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Chengdu Spaceon
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to generate 1.92 times more return on investment than Chengdu Spaceon. However, Zhejiang Construction is 1.92 times more volatile than Chengdu Spaceon Electronics. It trades about 0.14 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.01 per unit of risk. If you would invest 906.00 in Zhejiang Construction Investment on September 4, 2024 and sell it today you would earn a total of 113.00 from holding Zhejiang Construction Investment or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Zhejiang Construction |
| Chengdu Spaceon Elec |
Zhejiang Construction and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Chengdu Spaceon
The main advantage of trading using opposite Zhejiang Construction and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Zhejiang Construction vs. Youyou Foods Co | Zhejiang Construction vs. Shandong Sinoglory Health | Zhejiang Construction vs. Impulse Qingdao Health | Zhejiang Construction vs. Guangdong Wens Foodstuff |
| Chengdu Spaceon vs. Xinjiang Baodi Mining | Chengdu Spaceon vs. Shengda Mining Co | Chengdu Spaceon vs. Pengxin International Mining | Chengdu Spaceon vs. China Life Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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