Correlation Between Wanhua Chemical and Zhejiang Juhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wanhua Chemical Group and Zhejiang Juhua Co, you can compare the effects of market volatilities on Wanhua Chemical and Zhejiang Juhua 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 Wanhua Chemical with a short position of Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wanhua Chemical and Zhejiang Juhua.
Diversification Opportunities for Wanhua Chemical and Zhejiang Juhua
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wanhua and Zhejiang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wanhua Chemical Group and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua and Wanhua Chemical 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 Wanhua Chemical Group are associated (or correlated) with Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Wanhua Chemical i.e., Wanhua Chemical and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Wanhua Chemical and Zhejiang Juhua
Assuming the 90 days trading horizon Wanhua Chemical Group is expected to under-perform the Zhejiang Juhua. But the stock apears to be less risky and, when comparing its historical volatility, Wanhua Chemical Group is 1.32 times less risky than Zhejiang Juhua. The stock trades about -0.23 of its potential returns per unit of risk. The Zhejiang Juhua Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,058 in Zhejiang Juhua Co on August 28, 2024 and sell it today you would lose (4.00) from holding Zhejiang Juhua Co or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wanhua Chemical Group vs. Zhejiang Juhua Co
Performance |
| Timeline |
| Wanhua Chemical Group |
| Zhejiang Juhua |
Wanhua Chemical and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wanhua Chemical and Zhejiang Juhua
The main advantage of trading using opposite Wanhua Chemical and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wanhua Chemical position performs unexpectedly, Zhejiang Juhua 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 Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Wanhua Chemical vs. Chongqing Changan Automobile | Wanhua Chemical vs. Guangdong Shenglu Telecommunication | Wanhua Chemical vs. Tongyu Communication | Wanhua Chemical vs. Sinomach Automobile Co |
| Zhejiang Juhua vs. Guangzhou Dongfang Hotel | Zhejiang Juhua vs. Silkroad Visual Technology | Zhejiang Juhua vs. Hainan Airlines Co | Zhejiang Juhua vs. HanS Laser Tech |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Positions Ratings 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 | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |