Correlation Between Zhejiang Juhua and Shanxi Tond
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By analyzing existing cross correlation between Zhejiang Juhua Co and Shanxi Tond Chemical, you can compare the effects of market volatilities on Zhejiang Juhua and Shanxi Tond 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 Zhejiang Juhua with a short position of Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Shanxi Tond.
Diversification Opportunities for Zhejiang Juhua and Shanxi Tond
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Shanxi is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical and Zhejiang Juhua 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 Zhejiang Juhua Co are associated (or correlated) with Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and Shanxi Tond go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Shanxi Tond
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 1.06 times more return on investment than Shanxi Tond. However, Zhejiang Juhua is 1.06 times more volatile than Shanxi Tond Chemical. It trades about 0.14 of its potential returns per unit of risk. Shanxi Tond Chemical is currently generating about 0.0 per unit of risk. If you would invest 2,048 in Zhejiang Juhua Co on October 14, 2024 and sell it today you would earn a total of 457.00 from holding Zhejiang Juhua Co or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Shanxi Tond Chemical
Performance |
| Timeline |
| Zhejiang Juhua |
| Shanxi Tond Chemical |
Zhejiang Juhua and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Shanxi Tond
The main advantage of trading using opposite Zhejiang Juhua and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond's long position.| Zhejiang Juhua vs. Sinomach General Machinery | Zhejiang Juhua vs. Lutian Machinery Co | Zhejiang Juhua vs. Hunan Tyen Machinery | Zhejiang Juhua vs. Jiangsu Jinling Sports |
| Shanxi Tond vs. Tibet Huayu Mining | Shanxi Tond vs. Hefei Metalforming Mach | Shanxi Tond vs. Beijing HuaYuanYiTong Thermal | Shanxi Tond vs. Xinjiang Baodi 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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