Correlation Between Zhejiang Juhua and GRIPM Advanced
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By analyzing existing cross correlation between Zhejiang Juhua Co and GRIPM Advanced Materials, you can compare the effects of market volatilities on Zhejiang Juhua and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and GRIPM Advanced.
Diversification Opportunities for Zhejiang Juhua and GRIPM Advanced
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and GRIPM is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and GRIPM Advanced
Assuming the 90 days trading horizon Zhejiang Juhua is expected to generate 1.5 times less return on investment than GRIPM Advanced. But when comparing it to its historical volatility, Zhejiang Juhua Co is 1.17 times less risky than GRIPM Advanced. It trades about 0.14 of its potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,964 in GRIPM Advanced Materials on September 1, 2024 and sell it today you would earn a total of 316.00 from holding GRIPM Advanced Materials or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. GRIPM Advanced Materials
Performance |
| Timeline |
| Zhejiang Juhua |
| GRIPM Advanced Materials |
Zhejiang Juhua and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and GRIPM Advanced
The main advantage of trading using opposite Zhejiang Juhua and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced'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 |
| GRIPM Advanced vs. Chongqing Shunbo Aluminum | GRIPM Advanced vs. ZYF Lopsking Aluminum | GRIPM Advanced vs. Guangzhou Tinci Materials | GRIPM Advanced vs. Chahua Modern Housewares |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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