Correlation Between Zhejiang Juhua and Weihai Guangwei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Juhua Co and Weihai Guangwei Composites, you can compare the effects of market volatilities on Zhejiang Juhua and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Weihai Guangwei.
Diversification Opportunities for Zhejiang Juhua and Weihai Guangwei
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Weihai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Weihai Guangwei
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 0.73 times more return on investment than Weihai Guangwei. However, Zhejiang Juhua Co is 1.37 times less risky than Weihai Guangwei. It trades about 0.14 of its potential returns per unit of risk. Weihai Guangwei Composites is currently generating about 0.0 per unit of risk. If you would invest 2,092 in Zhejiang Juhua Co on September 1, 2024 and sell it today you would earn a total of 145.00 from holding Zhejiang Juhua Co or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Weihai Guangwei Composites
Performance |
| Timeline |
| Zhejiang Juhua |
| Weihai Guangwei Comp |
Zhejiang Juhua and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Weihai Guangwei
The main advantage of trading using opposite Zhejiang Juhua and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei'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 |
| Weihai Guangwei vs. Xizi Clean Energy | Weihai Guangwei vs. Northern United Publishing | Weihai Guangwei vs. Keda Clean Energy | Weihai Guangwei vs. Beijing HuaYuanYiTong Thermal |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |