Correlation Between Chinese Universe and Zhangjiagang Elegant
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By analyzing existing cross correlation between Chinese Universe Publishing and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Chinese Universe and Zhangjiagang Elegant 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 Chinese Universe with a short position of Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Zhangjiagang Elegant.
Diversification Opportunities for Chinese Universe and Zhangjiagang Elegant
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chinese and Zhangjiagang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Chinese Universe i.e., Chinese Universe and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Chinese Universe and Zhangjiagang Elegant
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Zhangjiagang Elegant. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.49 times less risky than Zhangjiagang Elegant. The stock trades about -0.11 of its potential returns per unit of risk. The Zhangjiagang Elegant Home is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Zhangjiagang Elegant Home on November 3, 2024 and sell it today you would earn a total of 48.00 from holding Zhangjiagang Elegant Home or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| Chinese Universe Pub |
| Zhangjiagang Elegant Home |
Chinese Universe and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Zhangjiagang Elegant
The main advantage of trading using opposite Chinese Universe and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| Chinese Universe vs. Chongqing Changan Automobile | Chinese Universe vs. Anhui Jianghuai Automobile | Chinese Universe vs. Shenzhen Noposion Agrochemicals | Chinese Universe vs. Maoming Petro Chemical Shihua |
| Zhangjiagang Elegant vs. Industrial and Commercial | Zhangjiagang Elegant vs. Agricultural Bank of | Zhangjiagang Elegant vs. Bank of China | Zhangjiagang Elegant vs. Postal Savings Bank |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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