Correlation Between Saurer Intelligent and Zhongzhu Medical
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By analyzing existing cross correlation between Saurer Intelligent Technology and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Saurer Intelligent and Zhongzhu Medical 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 Saurer Intelligent with a short position of Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saurer Intelligent and Zhongzhu Medical.
Diversification Opportunities for Saurer Intelligent and Zhongzhu Medical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saurer and Zhongzhu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Saurer Intelligent Technology and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings and Saurer Intelligent 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 Saurer Intelligent Technology are associated (or correlated) with Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Saurer Intelligent i.e., Saurer Intelligent and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Saurer Intelligent and Zhongzhu Medical
Assuming the 90 days trading horizon Saurer Intelligent Technology is expected to generate 2.36 times more return on investment than Zhongzhu Medical. However, Saurer Intelligent is 2.36 times more volatile than Zhongzhu Medical Holdings. It trades about 0.64 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.03 per unit of risk. If you would invest 201.00 in Saurer Intelligent Technology on September 15, 2024 and sell it today you would earn a total of 184.00 from holding Saurer Intelligent Technology or generate 91.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saurer Intelligent Technology vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Saurer Intelligent |
| Zhongzhu Medical Holdings |
Saurer Intelligent and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saurer Intelligent and Zhongzhu Medical
The main advantage of trading using opposite Saurer Intelligent and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saurer Intelligent position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Saurer Intelligent vs. Zhongyin Babi Food | Saurer Intelligent vs. HaiXin Foods Co | Saurer Intelligent vs. Chongqing Changan Automobile | Saurer Intelligent vs. Sichuan Teway Food |
| Zhongzhu Medical vs. Zhongtong Guomai Communication | Zhongzhu Medical vs. Tongyu Communication | Zhongzhu Medical vs. Nanjing Putian Telecommunications | Zhongzhu Medical vs. Ping An Insurance |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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