Correlation Between Anker Innovations and Zhejiang Construction
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By analyzing existing cross correlation between Anker Innovations Technology and Zhejiang Construction Investment, you can compare the effects of market volatilities on Anker Innovations and Zhejiang Construction 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 Anker Innovations with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anker Innovations and Zhejiang Construction.
Diversification Opportunities for Anker Innovations and Zhejiang Construction
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anker and Zhejiang is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Anker Innovations Technology and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and Anker Innovations 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 Anker Innovations Technology are associated (or correlated) with Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Anker Innovations i.e., Anker Innovations and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Anker Innovations and Zhejiang Construction
Assuming the 90 days trading horizon Anker Innovations Technology is expected to generate 0.9 times more return on investment than Zhejiang Construction. However, Anker Innovations Technology is 1.11 times less risky than Zhejiang Construction. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.04 per unit of risk. If you would invest 6,269 in Anker Innovations Technology on October 16, 2024 and sell it today you would earn a total of 4,075 from holding Anker Innovations Technology or generate 65.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Anker Innovations Technology vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Anker Innovations |
| Zhejiang Construction |
Anker Innovations and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anker Innovations and Zhejiang Construction
The main advantage of trading using opposite Anker Innovations and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anker Innovations position performs unexpectedly, Zhejiang Construction 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 Construction will offset losses from the drop in Zhejiang Construction's long position.| Anker Innovations vs. Kweichow Moutai Co | Anker Innovations vs. NAURA Technology Group | Anker Innovations vs. Zhejiang Orient Gene | Anker Innovations vs. APT Medical |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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