Correlation Between Sublime China and Zhejiang Construction
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By analyzing existing cross correlation between Sublime China Information and Zhejiang Construction Investment, you can compare the effects of market volatilities on Sublime China 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 Sublime China with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sublime China and Zhejiang Construction.
Diversification Opportunities for Sublime China and Zhejiang Construction
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sublime and Zhejiang is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sublime China Information and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and Sublime China 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 Sublime China Information 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 Sublime China i.e., Sublime China and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Sublime China and Zhejiang Construction
Assuming the 90 days trading horizon Sublime China Information is expected to generate 1.48 times more return on investment than Zhejiang Construction. However, Sublime China is 1.48 times more volatile than Zhejiang Construction Investment. It trades about 0.09 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 4,071 in Sublime China Information on October 25, 2024 and sell it today you would earn a total of 2,098 from holding Sublime China Information or generate 51.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Sublime China Information vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Sublime China Information |
| Zhejiang Construction |
Sublime China and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sublime China and Zhejiang Construction
The main advantage of trading using opposite Sublime China and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sublime China 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.| Sublime China vs. Bosera CMSK Industrial | Sublime China vs. Guocheng Mining Co | Sublime China vs. Rising Nonferrous Metals | Sublime China vs. Qingdao Choho Industrial |
| Zhejiang Construction vs. Dareway Software Co | Zhejiang Construction vs. Impulse Qingdao Health | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Youngy Health Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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