Correlation Between Zhongzhu Medical and Jiangxi Lianchuang
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Zhongzhu Medical and Jiangxi Lianchuang 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 Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Jiangxi Lianchuang.
Diversification Opportunities for Zhongzhu Medical and Jiangxi Lianchuang
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongzhu and Jiangxi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Jiangxi Lianchuang
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Jiangxi Lianchuang. But the stock apears to be less risky and, when comparing its historical volatility, Zhongzhu Medical Holdings is 1.53 times less risky than Jiangxi Lianchuang. The stock trades about -0.03 of its potential returns per unit of risk. The Jiangxi Lianchuang Opto electronic is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,596 in Jiangxi Lianchuang Opto electronic on October 19, 2024 and sell it today you would earn a total of 1,998 from holding Jiangxi Lianchuang Opto electronic or generate 76.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Jiangxi Lianchuang Opto |
Zhongzhu Medical and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Jiangxi Lianchuang
The main advantage of trading using opposite Zhongzhu Medical and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Jiangxi Lianchuang 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 Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Zhongzhu Medical vs. Mengtian Home Group | Zhongzhu Medical vs. Zoy Home Furnishing | Zhongzhu Medical vs. Eastroc Beverage Group | Zhongzhu Medical vs. Qumei Furniture Group |
| Jiangxi Lianchuang vs. Haima Automobile Group | Jiangxi Lianchuang vs. Hangzhou Gisway Information | Jiangxi Lianchuang vs. Anhui Jianghuai Automobile | Jiangxi Lianchuang vs. Longmaster Information Tech |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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