Correlation Between Inner Mongolia and Zhejiang Transfar
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Zhejiang Transfar Co, you can compare the effects of market volatilities on Inner Mongolia and Zhejiang Transfar 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 Inner Mongolia with a short position of Zhejiang Transfar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Zhejiang Transfar.
Diversification Opportunities for Inner Mongolia and Zhejiang Transfar
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Zhejiang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Zhejiang Transfar Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Transfar and Inner Mongolia 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 Inner Mongolia BaoTou are associated (or correlated) with Zhejiang Transfar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Transfar has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Zhejiang Transfar go up and down completely randomly.
Pair Corralation between Inner Mongolia and Zhejiang Transfar
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 0.96 times more return on investment than Zhejiang Transfar. However, Inner Mongolia BaoTou is 1.05 times less risky than Zhejiang Transfar. It trades about 0.11 of its potential returns per unit of risk. Zhejiang Transfar Co is currently generating about 0.07 per unit of risk. If you would invest 146.00 in Inner Mongolia BaoTou on September 3, 2024 and sell it today you would earn a total of 52.00 from holding Inner Mongolia BaoTou or generate 35.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Zhejiang Transfar Co
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Zhejiang Transfar |
Inner Mongolia and Zhejiang Transfar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Zhejiang Transfar
The main advantage of trading using opposite Inner Mongolia and Zhejiang Transfar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Zhejiang Transfar 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 Transfar will offset losses from the drop in Zhejiang Transfar's long position.| Inner Mongolia vs. Zijin Mining Group | Inner Mongolia vs. Baoshan Iron Steel | Inner Mongolia vs. Hoshine Silicon Ind |
| Zhejiang Transfar vs. Iat Automobile Technology | Zhejiang Transfar vs. Chahua Modern Housewares | Zhejiang Transfar vs. Haima Automobile Group | Zhejiang Transfar vs. Shenzhen Kexin Communication |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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