Correlation Between Malion New and Zhejiang Juhua
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By analyzing existing cross correlation between Malion New Materials and Zhejiang Juhua Co, you can compare the effects of market volatilities on Malion New and Zhejiang Juhua 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 Malion New with a short position of Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Zhejiang Juhua.
Diversification Opportunities for Malion New and Zhejiang Juhua
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Malion and Zhejiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua and Malion New 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 Malion New Materials are associated (or correlated) with Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Malion New i.e., Malion New and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Malion New and Zhejiang Juhua
Assuming the 90 days trading horizon Malion New Materials is expected to generate 2.35 times more return on investment than Zhejiang Juhua. However, Malion New is 2.35 times more volatile than Zhejiang Juhua Co. It trades about 0.19 of its potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.14 per unit of risk. If you would invest 815.00 in Malion New Materials on September 1, 2024 and sell it today you would earn a total of 189.00 from holding Malion New Materials or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Zhejiang Juhua Co
Performance |
| Timeline |
| Malion New Materials |
| Zhejiang Juhua |
Malion New and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Zhejiang Juhua
The main advantage of trading using opposite Malion New and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Zhejiang Juhua 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 Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Malion New vs. Leaguer Shenzhen MicroElectronics | Malion New vs. StarPower Semiconductor | Malion New vs. Integrated Electronic Systems | Malion New vs. Epoxy Base Electronic |
| Zhejiang Juhua vs. Hunan Investment Group | Zhejiang Juhua vs. BTG Hotels Group | Zhejiang Juhua vs. Shenzhen Centralcon Investment | Zhejiang Juhua vs. Harbin Hatou Investment |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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