Correlation Between Zhejiang Tailin and Hengli Industrial
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By analyzing existing cross correlation between Zhejiang Tailin Bioengineering and Hengli Industrial Development, you can compare the effects of market volatilities on Zhejiang Tailin and Hengli Industrial 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 Zhejiang Tailin with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Tailin and Hengli Industrial.
Diversification Opportunities for Zhejiang Tailin and Hengli Industrial
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Hengli is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Tailin Bioengineering and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Zhejiang Tailin 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 Zhejiang Tailin Bioengineering are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Zhejiang Tailin i.e., Zhejiang Tailin and Hengli Industrial go up and down completely randomly.
Pair Corralation between Zhejiang Tailin and Hengli Industrial
Assuming the 90 days trading horizon Zhejiang Tailin Bioengineering is expected to under-perform the Hengli Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Tailin Bioengineering is 1.19 times less risky than Hengli Industrial. The stock trades about -0.21 of its potential returns per unit of risk. The Hengli Industrial Development is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 218.00 in Hengli Industrial Development on October 17, 2024 and sell it today you would earn a total of 9.00 from holding Hengli Industrial Development or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhejiang Tailin Bioengineering vs. Hengli Industrial Development
Performance |
| Timeline |
| Zhejiang Tailin Bioe |
| Hengli Industrial |
Zhejiang Tailin and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Tailin and Hengli Industrial
The main advantage of trading using opposite Zhejiang Tailin and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Tailin position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Zhejiang Tailin vs. Gifore Agricultural Machinery | Zhejiang Tailin vs. Masterwork Machinery | Zhejiang Tailin vs. Jonjee Hi tech Industrial | Zhejiang Tailin vs. Sichuan Yahua Industrial |
| Hengli Industrial vs. Xinjiang Baodi Mining | Hengli Industrial vs. Ningbo Fujia Industrial | Hengli Industrial vs. Tibet Huayu Mining | Hengli Industrial vs. Unisplendour Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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