Correlation Between Zhongzhu Medical and Longxing Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongzhu Medical Holdings and Longxing Chemical Stock, you can compare the effects of market volatilities on Zhongzhu Medical and Longxing Chemical 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 Zhongzhu Medical with a short position of Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Longxing Chemical.
Diversification Opportunities for Zhongzhu Medical and Longxing Chemical
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongzhu and Longxing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock and Zhongzhu Medical 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 Zhongzhu Medical Holdings are associated (or correlated) with Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Longxing Chemical go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Longxing Chemical
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Longxing Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Zhongzhu Medical Holdings is 1.83 times less risky than Longxing Chemical. The stock trades about -0.41 of its potential returns per unit of risk. The Longxing Chemical Stock is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 578.00 in Longxing Chemical Stock on October 13, 2024 and sell it today you would lose (69.00) from holding Longxing Chemical Stock or give up 11.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Longxing Chemical Stock
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Longxing Chemical Stock |
Zhongzhu Medical and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Longxing Chemical
The main advantage of trading using opposite Zhongzhu Medical and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Zhongzhu Medical vs. Shantui Construction Machinery | Zhongzhu Medical vs. Sinomach General Machinery | Zhongzhu Medical vs. Weichai Heavy Machinery | Zhongzhu Medical vs. Nanxing Furniture Machinery |
| Longxing Chemical vs. Sinomach General Machinery | Longxing Chemical vs. Guangzhou Dongfang Hotel | Longxing Chemical vs. Zhongzhu Medical Holdings | Longxing Chemical vs. Jinling Hotel Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |