Correlation Between V V and Zhejiang Qianjiang
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By analyzing existing cross correlation between V V Food and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on V V and Zhejiang Qianjiang 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 V V with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Zhejiang Qianjiang.
Diversification Opportunities for V V and Zhejiang Qianjiang
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between 600300 and Zhejiang is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and V V 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 V V Food are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of V V i.e., V V and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between V V and Zhejiang Qianjiang
Assuming the 90 days trading horizon V V Food is expected to under-perform the Zhejiang Qianjiang. But the stock apears to be less risky and, when comparing its historical volatility, V V Food is 1.48 times less risky than Zhejiang Qianjiang. The stock trades about -0.24 of its potential returns per unit of risk. The Zhejiang Qianjiang Motorcycle is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,843 in Zhejiang Qianjiang Motorcycle on October 28, 2024 and sell it today you would earn a total of 131.00 from holding Zhejiang Qianjiang Motorcycle or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| V V Food |
| Zhejiang Qianjiang |
V V and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Zhejiang Qianjiang
The main advantage of trading using opposite V V and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| V V vs. Xizi Clean Energy | V V vs. Cultural Investment Holdings | V V vs. Anhui Deli Household | V V vs. Jointo Energy Investment |
| Zhejiang Qianjiang vs. Zhongrun Resources Investment | Zhejiang Qianjiang vs. China Asset Management | Zhejiang Qianjiang vs. Shenyang Blue Silver | Zhejiang Qianjiang vs. Hubei Geoway Investment |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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