Correlation Between Xiamen Jihong and Zhejiang Huayou
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By analyzing existing cross correlation between Xiamen Jihong Package and Zhejiang Huayou Cobalt, you can compare the effects of market volatilities on Xiamen Jihong and Zhejiang Huayou 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 Xiamen Jihong with a short position of Zhejiang Huayou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Zhejiang Huayou.
Diversification Opportunities for Xiamen Jihong and Zhejiang Huayou
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Zhejiang is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Zhejiang Huayou Cobalt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huayou Cobalt and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with Zhejiang Huayou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huayou Cobalt has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Zhejiang Huayou go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Zhejiang Huayou
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 1.29 times more return on investment than Zhejiang Huayou. However, Xiamen Jihong is 1.29 times more volatile than Zhejiang Huayou Cobalt. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Huayou Cobalt is currently generating about -0.05 per unit of risk. If you would invest 1,493 in Xiamen Jihong Package on October 16, 2024 and sell it today you would lose (311.00) from holding Xiamen Jihong Package or give up 20.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Zhejiang Huayou Cobalt
Performance |
| Timeline |
| Xiamen Jihong Package |
| Zhejiang Huayou Cobalt |
Xiamen Jihong and Zhejiang Huayou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Zhejiang Huayou
The main advantage of trading using opposite Xiamen Jihong and Zhejiang Huayou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Zhejiang Huayou 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 Huayou will offset losses from the drop in Zhejiang Huayou's long position.| Xiamen Jihong vs. SSAW Hotels Resorts | Xiamen Jihong vs. Haima Automobile Group | Xiamen Jihong vs. Ningbo Fangzheng Automobile | Xiamen Jihong vs. Hubei Geoway Investment |
| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
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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