Correlation Between Zhejiang Juhua and Malion New
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By analyzing existing cross correlation between Zhejiang Juhua Co and Malion New Materials, you can compare the effects of market volatilities on Zhejiang Juhua and Malion New 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 Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Malion New.
Diversification Opportunities for Zhejiang Juhua and Malion New
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Malion is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and Malion New go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Malion New
Assuming the 90 days trading horizon Zhejiang Juhua is expected to generate 3.97 times less return on investment than Malion New. But when comparing it to its historical volatility, Zhejiang Juhua Co is 1.79 times less risky than Malion New. It trades about 0.04 of its potential returns per unit of risk. Malion New Materials is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 771.00 in Malion New Materials on August 25, 2024 and sell it today you would earn a total of 49.00 from holding Malion New Materials or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Malion New Materials
Performance |
| Timeline |
| Zhejiang Juhua |
| Malion New Materials |
Zhejiang Juhua and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Malion New
The main advantage of trading using opposite Zhejiang Juhua and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.| Zhejiang Juhua vs. Sinomach Automobile Co | Zhejiang Juhua vs. Kunwu Jiuding Investment | Zhejiang Juhua vs. Metro Investment Development | Zhejiang Juhua vs. Jiangsu Xinri E Vehicle |
| Malion New vs. Shenzhen MYS Environmental | Malion New vs. Jiangsu Jinling Sports | Malion New vs. Anhui Gujing Distillery | Malion New vs. Ningbo Ligong Online |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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