Correlation Between Zhongfu Information and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Zhongfu Information and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Zhongfu Information and Beijing HuaYuanYiTong 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 Zhongfu Information with a short position of Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongfu Information and Beijing HuaYuanYiTong.
Diversification Opportunities for Zhongfu Information and Beijing HuaYuanYiTong
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongfu and Beijing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zhongfu Information and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong and Zhongfu Information 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 Zhongfu Information are associated (or correlated) with Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Zhongfu Information i.e., Zhongfu Information and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Zhongfu Information and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Zhongfu Information is expected to generate 1.35 times more return on investment than Beijing HuaYuanYiTong. However, Zhongfu Information is 1.35 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about 0.02 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.02 per unit of risk. If you would invest 1,752 in Zhongfu Information on October 18, 2024 and sell it today you would lose (120.00) from holding Zhongfu Information or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Zhongfu Information vs. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| Zhongfu Information |
| Beijing HuaYuanYiTong |
Zhongfu Information and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongfu Information and Beijing HuaYuanYiTong
The main advantage of trading using opposite Zhongfu Information and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongfu Information position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| Zhongfu Information vs. Everjoy Health Group | Zhongfu Information vs. Mingchen Health Co | Zhongfu Information vs. De Rucci Healthy | Zhongfu Information vs. Dezhan HealthCare Co |
| Beijing HuaYuanYiTong vs. Hefei Metalforming Mach | Beijing HuaYuanYiTong vs. Pengxin International Mining | Beijing HuaYuanYiTong vs. Suzhou Industrial Park | Beijing HuaYuanYiTong vs. Zhejiang Yongjin Metal |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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