Correlation Between Zhejiang Juhua and Hangzhou Gaoxin
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By analyzing existing cross correlation between Zhejiang Juhua Co and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Zhejiang Juhua and Hangzhou Gaoxin 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 Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Hangzhou Gaoxin.
Diversification Opportunities for Zhejiang Juhua and Hangzhou Gaoxin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Hangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Hangzhou Gaoxin
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 0.63 times more return on investment than Hangzhou Gaoxin. However, Zhejiang Juhua Co is 1.59 times less risky than Hangzhou Gaoxin. It trades about 0.07 of its potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about 0.01 per unit of risk. If you would invest 1,511 in Zhejiang Juhua Co on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Zhejiang Juhua Co or generate 48.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Zhejiang Juhua |
| Hangzhou Gaoxin Rubber |
Zhejiang Juhua and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Hangzhou Gaoxin
The main advantage of trading using opposite Zhejiang Juhua and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, Hangzhou Gaoxin 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 Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Zhejiang Juhua vs. Hunan Investment Group | Zhejiang Juhua vs. BTG Hotels Group | Zhejiang Juhua vs. Shenzhen Centralcon Investment | Zhejiang Juhua vs. Harbin Hatou Investment |
| Hangzhou Gaoxin vs. Shanghai Yanpu Metal | Hangzhou Gaoxin vs. Ningxia Younglight Chemicals | Hangzhou Gaoxin vs. Dymatic Chemicals | Hangzhou Gaoxin vs. CITIC Metal Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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