Correlation Between Zhongfu Information and INKON Life
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By analyzing existing cross correlation between Zhongfu Information and INKON Life Technology, you can compare the effects of market volatilities on Zhongfu Information and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongfu Information and INKON Life.
Diversification Opportunities for Zhongfu Information and INKON Life
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongfu and INKON is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhongfu Information and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Zhongfu Information i.e., Zhongfu Information and INKON Life go up and down completely randomly.
Pair Corralation between Zhongfu Information and INKON Life
Assuming the 90 days trading horizon Zhongfu Information is expected to generate 1.1 times less return on investment than INKON Life. In addition to that, Zhongfu Information is 1.25 times more volatile than INKON Life Technology. It trades about 0.03 of its total potential returns per unit of risk. INKON Life Technology is currently generating about 0.04 per unit of volatility. If you would invest 763.00 in INKON Life Technology on October 12, 2024 and sell it today you would earn a total of 113.00 from holding INKON Life Technology or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongfu Information vs. INKON Life Technology
Performance |
| Timeline |
| Zhongfu Information |
| INKON Life Technology |
Zhongfu Information and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongfu Information and INKON Life
The main advantage of trading using opposite Zhongfu Information and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongfu Information position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Zhongfu Information vs. Dawning Information Industry | Zhongfu Information vs. Chahua Modern Housewares | Zhongfu Information vs. Sublime China Information | Zhongfu Information vs. Wonders Information |
| INKON Life vs. Guangzhou Jinyi Media | INKON Life vs. Lontium Semiconductor Corp | INKON Life vs. Shandong Longquan Pipeline | INKON Life vs. Southern PublishingMedia Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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