Correlation Between Zhongzhu Medical and Jiangxi Naipu
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Zhongzhu Medical and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Jiangxi Naipu.
Diversification Opportunities for Zhongzhu Medical and Jiangxi Naipu
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongzhu and Jiangxi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Jiangxi Naipu
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Jiangxi Naipu. In addition to that, Zhongzhu Medical is 1.1 times more volatile than Jiangxi Naipu Mining. It trades about -0.26 of its total potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.2 per unit of volatility. If you would invest 2,950 in Jiangxi Naipu Mining on October 18, 2024 and sell it today you would lose (245.00) from holding Jiangxi Naipu Mining or give up 8.31% 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. Jiangxi Naipu Mining
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Jiangxi Naipu Mining |
Zhongzhu Medical and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Jiangxi Naipu
The main advantage of trading using opposite Zhongzhu Medical and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| Zhongzhu Medical vs. Ningbo Jintian Copper | Zhongzhu Medical vs. Jinling Hotel Corp | Zhongzhu Medical vs. Sino Platinum Metals Co | Zhongzhu Medical vs. Ye Chiu Metal |
| Jiangxi Naipu vs. Kontour Medical Technology | Jiangxi Naipu vs. Nuode Investment Co | Jiangxi Naipu vs. Eastroc Beverage Group | Jiangxi Naipu vs. Allgens Medical Technology |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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