Correlation Between Poly Real and Zhangjiagang Elegant
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By analyzing existing cross correlation between Poly Real Estate and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Poly Real and Zhangjiagang Elegant 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 Poly Real with a short position of Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Zhangjiagang Elegant.
Diversification Opportunities for Poly Real and Zhangjiagang Elegant
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Poly and Zhangjiagang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home and Poly Real 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 Poly Real Estate are associated (or correlated) with Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Poly Real i.e., Poly Real and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Poly Real and Zhangjiagang Elegant
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the Zhangjiagang Elegant. But the stock apears to be less risky and, when comparing its historical volatility, Poly Real Estate is 1.78 times less risky than Zhangjiagang Elegant. The stock trades about -0.26 of its potential returns per unit of risk. The Zhangjiagang Elegant Home is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 939.00 in Zhangjiagang Elegant Home on October 22, 2024 and sell it today you would lose (30.00) from holding Zhangjiagang Elegant Home or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| Poly Real Estate |
| Zhangjiagang Elegant Home |
Poly Real and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Zhangjiagang Elegant
The main advantage of trading using opposite Poly Real and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| Poly Real vs. Rising Nonferrous Metals | Poly Real vs. Shandong Hongchuang Aluminum | Poly Real vs. Bloomage Biotechnology Corp | Poly Real vs. Shenzhen Bioeasy Biotechnology |
| Zhangjiagang Elegant vs. Cabio Biotech Wuhan | Zhangjiagang Elegant vs. Dhc Software Co | Zhangjiagang Elegant vs. Guangzhou KingTeller Technology | Zhangjiagang Elegant vs. Caihong Display Devices |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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