Correlation Between Zhejiang Juhua and Zhuzhou Feilu
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By analyzing existing cross correlation between Zhejiang Juhua Co and Zhuzhou Feilu High Tech, you can compare the effects of market volatilities on Zhejiang Juhua and Zhuzhou Feilu 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 Zhuzhou Feilu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Zhuzhou Feilu.
Diversification Opportunities for Zhejiang Juhua and Zhuzhou Feilu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Zhuzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Zhuzhou Feilu High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Feilu High 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 Zhuzhou Feilu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Feilu High has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and Zhuzhou Feilu go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Zhuzhou Feilu
Assuming the 90 days trading horizon Zhejiang Juhua is expected to generate 3.99 times less return on investment than Zhuzhou Feilu. But when comparing it to its historical volatility, Zhejiang Juhua Co is 1.35 times less risky than Zhuzhou Feilu. It trades about 0.01 of its potential returns per unit of risk. Zhuzhou Feilu High Tech is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Zhuzhou Feilu High Tech on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Zhuzhou Feilu High Tech or generate 0.29% 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. Zhuzhou Feilu High Tech
Performance |
| Timeline |
| Zhejiang Juhua |
| Zhuzhou Feilu High |
Zhejiang Juhua and Zhuzhou Feilu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Zhuzhou Feilu
The main advantage of trading using opposite Zhejiang Juhua and Zhuzhou Feilu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, Zhuzhou Feilu 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 Zhuzhou Feilu will offset losses from the drop in Zhuzhou Feilu's long position.| Zhejiang Juhua vs. Zijin Mining Group | Zhejiang Juhua vs. Wanhua Chemical Group | Zhejiang Juhua vs. Baoshan Iron Steel | Zhejiang Juhua vs. Shandong Gold Mining |
| Zhuzhou Feilu vs. Zijin Mining Group | Zhuzhou Feilu vs. Baoshan Iron Steel | Zhuzhou Feilu vs. Shandong Gold Mining | Zhuzhou Feilu vs. Rongsheng Petrochemical 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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