Correlation Between Zhongfu Information and Shijiazhuang Tonhe
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By analyzing existing cross correlation between Zhongfu Information and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on Zhongfu Information and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongfu Information and Shijiazhuang Tonhe.
Diversification Opportunities for Zhongfu Information and Shijiazhuang Tonhe
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongfu and Shijiazhuang is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Zhongfu Information and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of Zhongfu Information i.e., Zhongfu Information and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between Zhongfu Information and Shijiazhuang Tonhe
Assuming the 90 days trading horizon Zhongfu Information is expected to under-perform the Shijiazhuang Tonhe. But the stock apears to be less risky and, when comparing its historical volatility, Zhongfu Information is 1.51 times less risky than Shijiazhuang Tonhe. The stock trades about -0.32 of its potential returns per unit of risk. The Shijiazhuang Tonhe Electronics is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,678 in Shijiazhuang Tonhe Electronics on October 12, 2024 and sell it today you would lose (73.00) from holding Shijiazhuang Tonhe Electronics or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongfu Information vs. Shijiazhuang Tonhe Electronics
Performance |
| Timeline |
| Zhongfu Information |
| Shijiazhuang Tonhe |
Zhongfu Information and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongfu Information and Shijiazhuang Tonhe
The main advantage of trading using opposite Zhongfu Information and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongfu Information position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe'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 |
| Shijiazhuang Tonhe vs. Zhongfu Information | Shijiazhuang Tonhe vs. Bonree Data Technology | Shijiazhuang Tonhe vs. Kuangda Technology Group | Shijiazhuang Tonhe vs. Eyebright Medical 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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