Correlation Between China Fund and Zhejiang JIULI
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By analyzing existing cross correlation between China Fund Management and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on China Fund and Zhejiang JIULI 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 China Fund with a short position of Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fund and Zhejiang JIULI.
Diversification Opportunities for China Fund and Zhejiang JIULI
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Zhejiang is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding China Fund Management and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi and China Fund 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 China Fund Management are associated (or correlated) with Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of China Fund i.e., China Fund and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between China Fund and Zhejiang JIULI
Assuming the 90 days trading horizon China Fund is expected to generate 20.7 times less return on investment than Zhejiang JIULI. But when comparing it to its historical volatility, China Fund Management is 9.0 times less risky than Zhejiang JIULI. It trades about 0.06 of its potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,316 in Zhejiang JIULI Hi tech on August 31, 2024 and sell it today you would earn a total of 140.00 from holding Zhejiang JIULI Hi tech or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fund Management vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| China Fund Management |
| Zhejiang JIULI Hi |
China Fund and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fund and Zhejiang JIULI
The main advantage of trading using opposite China Fund and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fund position performs unexpectedly, Zhejiang JIULI 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 JIULI will offset losses from the drop in Zhejiang JIULI's long position.| China Fund vs. Der International Home | China Fund vs. China World Trade | China Fund vs. Guangzhou Restaurants Group | China Fund vs. Shandong Homey Aquatic |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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