Correlation Between Zhejiang Construction and Zhejiang Tongxing
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By analyzing existing cross correlation between Zhejiang Construction Investment and Zhejiang Tongxing Technology, you can compare the effects of market volatilities on Zhejiang Construction and Zhejiang Tongxing 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 Zhejiang Tongxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Zhejiang Tongxing.
Diversification Opportunities for Zhejiang Construction and Zhejiang Tongxing
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Zhejiang Tongxing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tongxing 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 Zhejiang Tongxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tongxing has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Zhejiang Tongxing go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Zhejiang Tongxing
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to generate 1.58 times more return on investment than Zhejiang Tongxing. However, Zhejiang Construction is 1.58 times more volatile than Zhejiang Tongxing Technology. It trades about 0.13 of its potential returns per unit of risk. Zhejiang Tongxing Technology is currently generating about 0.01 per unit of risk. If you would invest 948.00 in Zhejiang Construction Investment on September 12, 2024 and sell it today you would earn a total of 121.00 from holding Zhejiang Construction Investment or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Zhejiang Tongxing Technology
Performance |
| Timeline |
| Zhejiang Construction |
| Zhejiang Tongxing |
Zhejiang Construction and Zhejiang Tongxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Zhejiang Tongxing
The main advantage of trading using opposite Zhejiang Construction and Zhejiang Tongxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Zhejiang Tongxing 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 Tongxing will offset losses from the drop in Zhejiang Tongxing's long position.| Zhejiang Construction vs. Lutian Machinery Co | Zhejiang Construction vs. PetroChina Co Ltd | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. Gansu Jiu Steel |
| Zhejiang Tongxing vs. Sunny Loan Top | Zhejiang Tongxing vs. Sportsoul Co Ltd | Zhejiang Tongxing vs. Metro Investment Development | Zhejiang Tongxing vs. Zhejiang Construction Investment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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