Correlation Between Zhejiang Construction and Xiangpiaopiao Food
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By analyzing existing cross correlation between Zhejiang Construction Investment and Xiangpiaopiao Food Co, you can compare the effects of market volatilities on Zhejiang Construction and Xiangpiaopiao Food 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 Xiangpiaopiao Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Xiangpiaopiao Food.
Diversification Opportunities for Zhejiang Construction and Xiangpiaopiao Food
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Xiangpiaopiao is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Xiangpiaopiao Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangpiaopiao Food 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 Xiangpiaopiao Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangpiaopiao Food has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Xiangpiaopiao Food go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Xiangpiaopiao Food
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Xiangpiaopiao Food. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Construction Investment is 2.99 times less risky than Xiangpiaopiao Food. The stock trades about -0.36 of its potential returns per unit of risk. The Xiangpiaopiao Food Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,538 in Xiangpiaopiao Food Co on October 19, 2024 and sell it today you would earn a total of 74.00 from holding Xiangpiaopiao Food Co or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Xiangpiaopiao Food Co
Performance |
| Timeline |
| Zhejiang Construction |
| Xiangpiaopiao Food |
Zhejiang Construction and Xiangpiaopiao Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Xiangpiaopiao Food
The main advantage of trading using opposite Zhejiang Construction and Xiangpiaopiao Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Xiangpiaopiao Food 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 Xiangpiaopiao Food will offset losses from the drop in Xiangpiaopiao Food's long position.| Zhejiang Construction vs. Sublime China Information | Zhejiang Construction vs. Dymatic Chemicals | Zhejiang Construction vs. Miracll Chemicals Co | Zhejiang Construction vs. Shenzhen SDG Information |
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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