Correlation Between Zhejiang Construction and 360 Security
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By analyzing existing cross correlation between Zhejiang Construction Investment and 360 Security Technology, you can compare the effects of market volatilities on Zhejiang Construction and 360 Security 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 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and 360 Security.
Diversification Opportunities for Zhejiang Construction and 360 Security
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and 360 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology 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 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and 360 Security go up and down completely randomly.
Pair Corralation between Zhejiang Construction and 360 Security
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the 360 Security. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Construction Investment is 1.9 times less risky than 360 Security. The stock trades about -0.14 of its potential returns per unit of risk. The 360 Security Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 994.00 in 360 Security Technology on November 2, 2024 and sell it today you would earn a total of 116.00 from holding 360 Security Technology or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. 360 Security Technology
Performance |
| Timeline |
| Zhejiang Construction |
| 360 Security Technology |
Zhejiang Construction and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and 360 Security
The main advantage of trading using opposite Zhejiang Construction and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security's long position.| Zhejiang Construction vs. Agricultural Bank of | Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. China Construction Bank |
| 360 Security vs. China State Construction | 360 Security vs. Poly Real Estate | 360 Security vs. China Vanke Co | 360 Security vs. China Merchants Shekou |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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