Correlation Between Ziel Home and Xiangtan Electrochemical
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By analyzing existing cross correlation between Ziel Home Furnishing and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Ziel Home and Xiangtan Electrochemical 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 Ziel Home with a short position of Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Xiangtan Electrochemical.
Diversification Opportunities for Ziel Home and Xiangtan Electrochemical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ziel and Xiangtan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical and Ziel Home 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 Ziel Home Furnishing are associated (or correlated) with Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Ziel Home i.e., Ziel Home and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Ziel Home and Xiangtan Electrochemical
Assuming the 90 days trading horizon Ziel Home Furnishing is expected to generate 0.86 times more return on investment than Xiangtan Electrochemical. However, Ziel Home Furnishing is 1.17 times less risky than Xiangtan Electrochemical. It trades about 0.18 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about 0.13 per unit of risk. If you would invest 1,941 in Ziel Home Furnishing on September 4, 2024 and sell it today you would earn a total of 222.00 from holding Ziel Home Furnishing or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziel Home Furnishing vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Ziel Home Furnishing |
| Xiangtan Electrochemical |
Ziel Home and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and Xiangtan Electrochemical
The main advantage of trading using opposite Ziel Home and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Ziel Home vs. Kweichow Moutai Co | Ziel Home vs. NAURA Technology Group | Ziel Home vs. Zhejiang Orient Gene | Ziel Home vs. APT Medical |
| Xiangtan Electrochemical vs. Zijin Mining Group | Xiangtan Electrochemical vs. Wanhua Chemical Group | Xiangtan Electrochemical vs. Baoshan Iron Steel | Xiangtan Electrochemical vs. Shandong Gold Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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