Correlation Between Zhejiang Huatong and Financial Street
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By analyzing existing cross correlation between Zhejiang Huatong Meat and Financial Street Holdings, you can compare the effects of market volatilities on Zhejiang Huatong and Financial Street 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 Huatong with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huatong and Financial Street.
Diversification Opportunities for Zhejiang Huatong and Financial Street
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Financial is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huatong Meat and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and Zhejiang Huatong 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 Huatong Meat are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of Zhejiang Huatong i.e., Zhejiang Huatong and Financial Street go up and down completely randomly.
Pair Corralation between Zhejiang Huatong and Financial Street
Assuming the 90 days trading horizon Zhejiang Huatong Meat is expected to generate 0.96 times more return on investment than Financial Street. However, Zhejiang Huatong Meat is 1.04 times less risky than Financial Street. It trades about -0.01 of its potential returns per unit of risk. Financial Street Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,485 in Zhejiang Huatong Meat on October 16, 2024 and sell it today you would lose (383.00) from holding Zhejiang Huatong Meat or give up 25.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huatong Meat vs. Financial Street Holdings
Performance |
| Timeline |
| Zhejiang Huatong Meat |
| Financial Street Holdings |
Zhejiang Huatong and Financial Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huatong and Financial Street
The main advantage of trading using opposite Zhejiang Huatong and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huatong position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.| Zhejiang Huatong vs. Financial Street Holdings | Zhejiang Huatong vs. Vanfund Urban Investment | Zhejiang Huatong vs. Bank of Suzhou | Zhejiang Huatong vs. Zhongrun Resources Investment |
| Financial Street vs. Zoje Resources Investment | Financial Street vs. Postal Savings Bank | Financial Street vs. Zhongrun Resources Investment | Financial Street vs. Hunan Investment Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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