Correlation Between Zhongzhu Medical and Anhui Xinhua
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Anhui Xinhua Media, you can compare the effects of market volatilities on Zhongzhu Medical and Anhui Xinhua 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 Anhui Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Anhui Xinhua.
Diversification Opportunities for Zhongzhu Medical and Anhui Xinhua
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongzhu and Anhui is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Anhui Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Anhui Xinhua go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Anhui Xinhua
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Anhui Xinhua. In addition to that, Zhongzhu Medical is 1.15 times more volatile than Anhui Xinhua Media. It trades about -0.11 of its total potential returns per unit of risk. Anhui Xinhua Media is currently generating about -0.05 per unit of volatility. If you would invest 710.00 in Anhui Xinhua Media on October 30, 2024 and sell it today you would lose (32.00) from holding Anhui Xinhua Media or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Anhui Xinhua Media
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Anhui Xinhua Media |
Zhongzhu Medical and Anhui Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Anhui Xinhua
The main advantage of trading using opposite Zhongzhu Medical and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Anhui Xinhua 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 Anhui Xinhua will offset losses from the drop in Anhui Xinhua's long position.| Zhongzhu Medical vs. Beijing Sanyuan Foods | Zhongzhu Medical vs. Great Sun Foods Co | Zhongzhu Medical vs. HaiXin Foods Co | Zhongzhu Medical vs. China Mobile Limited |
| Anhui Xinhua vs. PetroChina Co Ltd | Anhui Xinhua vs. China Mobile Limited | Anhui Xinhua vs. CNOOC Limited | Anhui Xinhua 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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