Correlation Between Zhongzhu Medical and Kailong High
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Kailong High Technology, you can compare the effects of market volatilities on Zhongzhu Medical and Kailong High 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 Kailong High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Kailong High.
Diversification Opportunities for Zhongzhu Medical and Kailong High
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongzhu and Kailong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Kailong High Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kailong High Technology 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 Kailong High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kailong High Technology has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Kailong High go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Kailong High
Assuming the 90 days trading horizon Zhongzhu Medical is expected to generate 2.62 times less return on investment than Kailong High. But when comparing it to its historical volatility, Zhongzhu Medical Holdings is 2.05 times less risky than Kailong High. It trades about 0.04 of its potential returns per unit of risk. Kailong High Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,047 in Kailong High Technology on October 18, 2024 and sell it today you would earn a total of 121.00 from holding Kailong High Technology or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Kailong High Technology
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Kailong High Technology |
Zhongzhu Medical and Kailong High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Kailong High
The main advantage of trading using opposite Zhongzhu Medical and Kailong High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Kailong High 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 Kailong High will offset losses from the drop in Kailong High'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 |
| Kailong High vs. Sanbo Hospital Management | Kailong High vs. Chengdu Spaceon Electronics | Kailong High vs. Dr Peng Telecom | Kailong High vs. State Grid InformationCommunication |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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