Correlation Between ZhongAn Online and DATAGROUP
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and DATAGROUP at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ZhongAn Online and DATAGROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and DATAGROUP SE, you can compare the effects of market volatilities on ZhongAn Online and DATAGROUP 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 ZhongAn Online with a short position of DATAGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and DATAGROUP.
Diversification Opportunities for ZhongAn Online and DATAGROUP
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZhongAn and DATAGROUP is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and DATAGROUP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAGROUP SE and ZhongAn Online 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 ZhongAn Online P are associated (or correlated) with DATAGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAGROUP SE has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and DATAGROUP go up and down completely randomly.
Pair Corralation between ZhongAn Online and DATAGROUP
Assuming the 90 days trading horizon ZhongAn Online P is expected to generate 1.7 times more return on investment than DATAGROUP. However, ZhongAn Online is 1.7 times more volatile than DATAGROUP SE. It trades about -0.02 of its potential returns per unit of risk. DATAGROUP SE is currently generating about -0.03 per unit of risk. If you would invest 270.00 in ZhongAn Online P on November 9, 2024 and sell it today you would lose (125.00) from holding ZhongAn Online P or give up 46.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZhongAn Online P vs. DATAGROUP SE
Performance |
| Timeline |
| ZhongAn Online P |
| DATAGROUP SE |
ZhongAn Online and DATAGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and DATAGROUP
The main advantage of trading using opposite ZhongAn Online and DATAGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, DATAGROUP 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 DATAGROUP will offset losses from the drop in DATAGROUP's long position.| ZhongAn Online vs. SQUIRREL MEDIA SA | ZhongAn Online vs. Elmos Semiconductor SE | ZhongAn Online vs. CNVISION MEDIA | ZhongAn Online vs. PROSIEBENSAT1 MEDIADR4 |
| DATAGROUP vs. JAPAN TOBACCO UNSPADR12 | DATAGROUP vs. SCIENCE IN SPORT | DATAGROUP vs. Stewart Information Services | DATAGROUP vs. DATADOT TECHNOLOGY |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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