Correlation Between Wuxi Lead and Zhejiang JIULI
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By analyzing existing cross correlation between Wuxi Lead Auto and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on Wuxi Lead and Zhejiang JIULI 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 Wuxi Lead with a short position of Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Lead and Zhejiang JIULI.
Diversification Opportunities for Wuxi Lead and Zhejiang JIULI
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuxi and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Lead Auto and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi and Wuxi Lead 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 Wuxi Lead Auto are associated (or correlated) with Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of Wuxi Lead i.e., Wuxi Lead and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between Wuxi Lead and Zhejiang JIULI
Assuming the 90 days trading horizon Wuxi Lead Auto is expected to under-perform the Zhejiang JIULI. In addition to that, Wuxi Lead is 1.71 times more volatile than Zhejiang JIULI Hi tech. It trades about -0.02 of its total potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.06 per unit of volatility. If you would invest 1,565 in Zhejiang JIULI Hi tech on August 29, 2024 and sell it today you would earn a total of 787.00 from holding Zhejiang JIULI Hi tech or generate 50.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Lead Auto vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| Wuxi Lead Auto |
| Zhejiang JIULI Hi |
Wuxi Lead and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Lead and Zhejiang JIULI
The main advantage of trading using opposite Wuxi Lead and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Lead position performs unexpectedly, Zhejiang JIULI 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 JIULI will offset losses from the drop in Zhejiang JIULI's long position.| Wuxi Lead vs. China Aluminum International | Wuxi Lead vs. Rising Nonferrous Metals | Wuxi Lead vs. Anhui Transport Consulting | Wuxi Lead vs. Vanfund Urban Investment |
| Zhejiang JIULI vs. Shaanxi Broadcast TV | Zhejiang JIULI vs. Anhui Transport Consulting | Zhejiang JIULI vs. Longjian Road Bridge | Zhejiang JIULI vs. King Strong New Material |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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