Correlation Between Zhonghong Pulin and Eastern Communications
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By analyzing existing cross correlation between Zhonghong Pulin Medical and Eastern Communications Co, you can compare the effects of market volatilities on Zhonghong Pulin and Eastern Communications 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 Zhonghong Pulin with a short position of Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Eastern Communications.
Diversification Opportunities for Zhonghong Pulin and Eastern Communications
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhonghong and Eastern is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications and Zhonghong Pulin 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 Zhonghong Pulin Medical are associated (or correlated) with Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Zhonghong Pulin i.e., Zhonghong Pulin and Eastern Communications go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Eastern Communications
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to generate 1.4 times more return on investment than Eastern Communications. However, Zhonghong Pulin is 1.4 times more volatile than Eastern Communications Co. It trades about 0.0 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.0 per unit of risk. If you would invest 1,442 in Zhonghong Pulin Medical on October 11, 2024 and sell it today you would lose (204.00) from holding Zhonghong Pulin Medical or give up 14.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. Eastern Communications Co
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| Eastern Communications |
Zhonghong Pulin and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and Eastern Communications
The main advantage of trading using opposite Zhonghong Pulin and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Zhonghong Pulin vs. Shengda Mining Co | Zhonghong Pulin vs. Ningxia Younglight Chemicals | Zhonghong Pulin vs. Western Mining Co | Zhonghong Pulin vs. Guangdong Silvere Sci |
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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