Correlation Between Zhonghang Electronic and TianJin 712
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By analyzing existing cross correlation between Zhonghang Electronic Measuring and TianJin 712 Communication, you can compare the effects of market volatilities on Zhonghang Electronic and TianJin 712 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 Zhonghang Electronic with a short position of TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghang Electronic and TianJin 712.
Diversification Opportunities for Zhonghang Electronic and TianJin 712
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhonghang and TianJin is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghang Electronic Measuring and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication and Zhonghang Electronic 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 Zhonghang Electronic Measuring are associated (or correlated) with TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Zhonghang Electronic i.e., Zhonghang Electronic and TianJin 712 go up and down completely randomly.
Pair Corralation between Zhonghang Electronic and TianJin 712
Assuming the 90 days trading horizon Zhonghang Electronic Measuring is expected to generate 1.48 times more return on investment than TianJin 712. However, Zhonghang Electronic is 1.48 times more volatile than TianJin 712 Communication. It trades about 0.09 of its potential returns per unit of risk. TianJin 712 Communication is currently generating about -0.04 per unit of risk. If you would invest 1,828 in Zhonghang Electronic Measuring on October 26, 2024 and sell it today you would earn a total of 5,025 from holding Zhonghang Electronic Measuring or generate 274.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghang Electronic Measuring vs. TianJin 712 Communication
Performance |
| Timeline |
| Zhonghang Electronic |
| TianJin 712 Communication |
Zhonghang Electronic and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghang Electronic and TianJin 712
The main advantage of trading using opposite Zhonghang Electronic and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghang Electronic position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712's long position.| Zhonghang Electronic vs. Agricultural Bank of | Zhonghang Electronic vs. Industrial and Commercial | Zhonghang Electronic vs. Bank of China | Zhonghang Electronic vs. PetroChina Co Ltd |
| TianJin 712 vs. Bus Online Co | TianJin 712 vs. Holitech Technology Co | TianJin 712 vs. Gome Telecom Equipment | TianJin 712 vs. Cultural Investment Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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