Correlation Between Zhejiang Zhengguang and 360 Security
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By analyzing existing cross correlation between Zhejiang Zhengguang Industrial and 360 Security Technology, you can compare the effects of market volatilities on Zhejiang Zhengguang and 360 Security 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 Zhengguang with a short position of 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Zhengguang and 360 Security.
Diversification Opportunities for Zhejiang Zhengguang and 360 Security
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and 360 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Zhengguang Industrial and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology and Zhejiang Zhengguang 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 Zhengguang Industrial are associated (or correlated) with 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of Zhejiang Zhengguang i.e., Zhejiang Zhengguang and 360 Security go up and down completely randomly.
Pair Corralation between Zhejiang Zhengguang and 360 Security
Assuming the 90 days trading horizon Zhejiang Zhengguang Industrial is expected to generate 1.11 times more return on investment than 360 Security. However, Zhejiang Zhengguang is 1.11 times more volatile than 360 Security Technology. It trades about 0.02 of its potential returns per unit of risk. 360 Security Technology is currently generating about 0.01 per unit of risk. If you would invest 2,530 in Zhejiang Zhengguang Industrial on September 1, 2024 and sell it today you would lose (34.00) from holding Zhejiang Zhengguang Industrial or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Zhengguang Industrial vs. 360 Security Technology
Performance |
| Timeline |
| Zhejiang Zhengguang |
| 360 Security Technology |
Zhejiang Zhengguang and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Zhengguang and 360 Security
The main advantage of trading using opposite Zhejiang Zhengguang and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Zhengguang position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security's long position.| Zhejiang Zhengguang vs. Zijin Mining Group | Zhejiang Zhengguang vs. Wanhua Chemical Group | Zhejiang Zhengguang vs. Baoshan Iron Steel | Zhejiang Zhengguang vs. Shandong Gold Mining |
| 360 Security vs. Shenzhen AV Display Co | 360 Security vs. Zhejiang Zhengguang Industrial | 360 Security vs. Huafa Industrial Co | 360 Security vs. Bosera CMSK Industrial |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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