Correlation Between Zhuzhou Feilu and Zhejiang Xiantong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhuzhou Feilu High Tech and Zhejiang Xiantong RubberPlastic, you can compare the effects of market volatilities on Zhuzhou Feilu and Zhejiang Xiantong 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 Zhuzhou Feilu with a short position of Zhejiang Xiantong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuzhou Feilu and Zhejiang Xiantong.
Diversification Opportunities for Zhuzhou Feilu and Zhejiang Xiantong
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhuzhou and Zhejiang is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zhuzhou Feilu High Tech and Zhejiang Xiantong RubberPlasti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Xiantong and Zhuzhou Feilu 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 Zhuzhou Feilu High Tech are associated (or correlated) with Zhejiang Xiantong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Xiantong has no effect on the direction of Zhuzhou Feilu i.e., Zhuzhou Feilu and Zhejiang Xiantong go up and down completely randomly.
Pair Corralation between Zhuzhou Feilu and Zhejiang Xiantong
Assuming the 90 days trading horizon Zhuzhou Feilu High Tech is expected to generate 1.14 times more return on investment than Zhejiang Xiantong. However, Zhuzhou Feilu is 1.14 times more volatile than Zhejiang Xiantong RubberPlastic. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Xiantong RubberPlastic is currently generating about 0.02 per unit of risk. If you would invest 738.00 in Zhuzhou Feilu High Tech on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Zhuzhou Feilu High Tech or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Zhuzhou Feilu High Tech vs. Zhejiang Xiantong RubberPlasti
Performance |
| Timeline |
| Zhuzhou Feilu High |
| Zhejiang Xiantong |
Zhuzhou Feilu and Zhejiang Xiantong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhuzhou Feilu and Zhejiang Xiantong
The main advantage of trading using opposite Zhuzhou Feilu and Zhejiang Xiantong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuzhou Feilu position performs unexpectedly, Zhejiang Xiantong 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 Xiantong will offset losses from the drop in Zhejiang Xiantong's long position.| Zhuzhou Feilu vs. Zhejiang Xiantong RubberPlastic | Zhuzhou Feilu vs. Hengerda New Materials | Zhuzhou Feilu vs. Eastern Air Logistics | Zhuzhou Feilu vs. Kunwu Jiuding Investment |
| Zhejiang Xiantong vs. Lutian Machinery Co | Zhejiang Xiantong vs. PetroChina Co Ltd | Zhejiang Xiantong vs. Bank of China | Zhejiang Xiantong vs. Gansu Jiu Steel |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |