Correlation Between Zhejiang Tongxing and Sunny Loan
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By analyzing existing cross correlation between Zhejiang Tongxing Technology and Sunny Loan Top, you can compare the effects of market volatilities on Zhejiang Tongxing and Sunny Loan 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 Tongxing with a short position of Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Tongxing and Sunny Loan.
Diversification Opportunities for Zhejiang Tongxing and Sunny Loan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Sunny is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Tongxing Technology and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top and Zhejiang Tongxing 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 Tongxing Technology are associated (or correlated) with Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Zhejiang Tongxing i.e., Zhejiang Tongxing and Sunny Loan go up and down completely randomly.
Pair Corralation between Zhejiang Tongxing and Sunny Loan
Assuming the 90 days trading horizon Zhejiang Tongxing is expected to generate 11.39 times less return on investment than Sunny Loan. In addition to that, Zhejiang Tongxing is 1.16 times more volatile than Sunny Loan Top. It trades about 0.01 of its total potential returns per unit of risk. Sunny Loan Top is currently generating about 0.07 per unit of volatility. If you would invest 649.00 in Sunny Loan Top on September 12, 2024 and sell it today you would earn a total of 503.00 from holding Sunny Loan Top or generate 77.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Tongxing Technology vs. Sunny Loan Top
Performance |
| Timeline |
| Zhejiang Tongxing |
| Sunny Loan Top |
Zhejiang Tongxing and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Tongxing and Sunny Loan
The main advantage of trading using opposite Zhejiang Tongxing and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Tongxing position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Zhejiang Tongxing vs. Sunny Loan Top | Zhejiang Tongxing vs. Sportsoul Co Ltd | Zhejiang Tongxing vs. Metro Investment Development | Zhejiang Tongxing vs. Zhejiang Construction Investment |
| Sunny Loan vs. Lutian Machinery Co | Sunny Loan vs. PetroChina Co Ltd | Sunny Loan vs. Bank of China | Sunny Loan 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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