Correlation Between Zhejiang Huatong and Cinda Securities
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By analyzing existing cross correlation between Zhejiang Huatong Meat and Cinda Securities Co, you can compare the effects of market volatilities on Zhejiang Huatong and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huatong and Cinda Securities.
Diversification Opportunities for Zhejiang Huatong and Cinda Securities
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Cinda is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huatong Meat and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Zhejiang Huatong i.e., Zhejiang Huatong and Cinda Securities go up and down completely randomly.
Pair Corralation between Zhejiang Huatong and Cinda Securities
Assuming the 90 days trading horizon Zhejiang Huatong Meat is expected to under-perform the Cinda Securities. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Huatong Meat is 1.21 times less risky than Cinda Securities. The stock trades about 0.0 of its potential returns per unit of risk. The Cinda Securities Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,179 in Cinda Securities Co on September 20, 2024 and sell it today you would earn a total of 348.00 from holding Cinda Securities Co or generate 29.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.43% |
| Values | Daily Returns |
Zhejiang Huatong Meat vs. Cinda Securities Co
Performance |
| Timeline |
| Zhejiang Huatong Meat |
| Cinda Securities |
Zhejiang Huatong and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huatong and Cinda Securities
The main advantage of trading using opposite Zhejiang Huatong and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huatong position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Zhejiang Huatong vs. Nanjing Putian Telecommunications | Zhejiang Huatong vs. Tianjin Realty Development | Zhejiang Huatong vs. Kangyue Technology Co | Zhejiang Huatong vs. Shenzhen Hifuture Electric |
| Cinda Securities vs. Zhejiang Huatong Meat | Cinda Securities vs. Chengdu Spaceon Electronics | Cinda Securities vs. Heilongjiang Publishing Media | Cinda Securities vs. JCHX Mining Management |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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