Correlation Between Shandong Rike and Zhejiang Qianjiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Rike Chemical and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Shandong Rike and Zhejiang Qianjiang 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 Shandong Rike with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Rike and Zhejiang Qianjiang.
Diversification Opportunities for Shandong Rike and Zhejiang Qianjiang
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Zhejiang is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Rike Chemical and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and Shandong Rike 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 Shandong Rike Chemical are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Shandong Rike i.e., Shandong Rike and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Shandong Rike and Zhejiang Qianjiang
Assuming the 90 days trading horizon Shandong Rike is expected to generate 15.7 times less return on investment than Zhejiang Qianjiang. In addition to that, Shandong Rike is 1.21 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.0 of its total potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.09 per unit of volatility. If you would invest 1,764 in Zhejiang Qianjiang Motorcycle on November 6, 2024 and sell it today you would earn a total of 228.00 from holding Zhejiang Qianjiang Motorcycle or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Rike Chemical vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Shandong Rike Chemical |
| Zhejiang Qianjiang |
Shandong Rike and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Rike and Zhejiang Qianjiang
The main advantage of trading using opposite Shandong Rike and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Rike position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Shandong Rike vs. Zhongyin Babi Food | Shandong Rike vs. JuneYao Dairy Co | Shandong Rike vs. V V Food | Shandong Rike vs. Eastroc Beverage Group |
| Zhejiang Qianjiang vs. Jinhui Liquor Co | Zhejiang Qianjiang vs. Lier Chemical Co | Zhejiang Qianjiang vs. Shenyang Chemical Industry | Zhejiang Qianjiang vs. Central Plains Environment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |