Correlation Between Zhejiang Juhua and Suzhou Xingye
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By analyzing existing cross correlation between Zhejiang Juhua Co and Suzhou Xingye Material, you can compare the effects of market volatilities on Zhejiang Juhua and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Suzhou Xingye.
Diversification Opportunities for Zhejiang Juhua and Suzhou Xingye
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Suzhou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Suzhou Xingye
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 0.54 times more return on investment than Suzhou Xingye. However, Zhejiang Juhua Co is 1.84 times less risky than Suzhou Xingye. It trades about -0.24 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about -0.42 per unit of risk. If you would invest 2,567 in Zhejiang Juhua Co on November 27, 2024 and sell it today you would lose (169.00) from holding Zhejiang Juhua Co or give up 6.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Suzhou Xingye Material
Performance |
| Timeline |
| Zhejiang Juhua |
| Suzhou Xingye Material |
Zhejiang Juhua and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Suzhou Xingye
The main advantage of trading using opposite Zhejiang Juhua and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Zhejiang Juhua vs. Tongxing Environmental Protection | Zhejiang Juhua vs. Changjiang Jinggong Steel | Zhejiang Juhua vs. Northking Information Technology | Zhejiang Juhua vs. Fangda Special Steel |
| Suzhou Xingye vs. Guangdong Transtek Medical | Suzhou Xingye vs. Tangel Publishing | Suzhou Xingye vs. Shandong Publishing Media | Suzhou Xingye vs. Bohai Leasing 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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