Correlation Between ZhongAn Online and MARKET VECTR
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and MARKET VECTR 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 MARKET VECTR 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 MARKET VECTR RETAIL, you can compare the effects of market volatilities on ZhongAn Online and MARKET VECTR 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 MARKET VECTR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and MARKET VECTR.
Diversification Opportunities for ZhongAn Online and MARKET VECTR
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZhongAn and MARKET is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and MARKET VECTR RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKET VECTR RETAIL 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 MARKET VECTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKET VECTR RETAIL has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and MARKET VECTR go up and down completely randomly.
Pair Corralation between ZhongAn Online and MARKET VECTR
Assuming the 90 days trading horizon ZhongAn Online is expected to generate 1.26 times less return on investment than MARKET VECTR. In addition to that, ZhongAn Online is 5.24 times more volatile than MARKET VECTR RETAIL. It trades about 0.02 of its total potential returns per unit of risk. MARKET VECTR RETAIL is currently generating about 0.12 per unit of volatility. If you would invest 18,416 in MARKET VECTR RETAIL on November 3, 2024 and sell it today you would earn a total of 4,724 from holding MARKET VECTR RETAIL or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
ZhongAn Online P vs. MARKET VECTR RETAIL
Performance |
| Timeline |
| ZhongAn Online P |
| MARKET VECTR RETAIL |
ZhongAn Online and MARKET VECTR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and MARKET VECTR
The main advantage of trading using opposite ZhongAn Online and MARKET VECTR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, MARKET VECTR 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 MARKET VECTR will offset losses from the drop in MARKET VECTR's long position.| ZhongAn Online vs. SENECA FOODS A | ZhongAn Online vs. Casio Computer CoLtd | ZhongAn Online vs. GMO Internet | ZhongAn Online vs. Verizon Communications |
| MARKET VECTR vs. Diamyd Medical AB | MARKET VECTR vs. PEPTONIC MEDICAL | MARKET VECTR vs. Gladstone Investment | MARKET VECTR vs. Clearside Biomedical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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