Correlation Between Aba Chemicals and Zhongzhu Medical
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By analyzing existing cross correlation between Aba Chemicals Corp and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Aba Chemicals and Zhongzhu Medical 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 Aba Chemicals with a short position of Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Zhongzhu Medical.
Diversification Opportunities for Aba Chemicals and Zhongzhu Medical
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aba and Zhongzhu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Aba Chemicals and Zhongzhu Medical
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Zhongzhu Medical. In addition to that, Aba Chemicals is 1.01 times more volatile than Zhongzhu Medical Holdings. It trades about -0.28 of its total potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.11 per unit of volatility. If you would invest 139.00 in Zhongzhu Medical Holdings on October 25, 2024 and sell it today you would lose (8.00) from holding Zhongzhu Medical Holdings or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Aba Chemicals Corp |
| Zhongzhu Medical Holdings |
Aba Chemicals and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Zhongzhu Medical
The main advantage of trading using opposite Aba Chemicals and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Rongsheng Petrochemical Co |
| Zhongzhu Medical vs. Gansu Jiu Steel | Zhongzhu Medical vs. Ming Yang Smart | Zhongzhu Medical vs. Aba Chemicals Corp | Zhongzhu Medical vs. Loctek Ergonomic 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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