Correlation Between JCET Group and Zangge Holding
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By analyzing existing cross correlation between JCET Group Co and Zangge Holding Co, you can compare the effects of market volatilities on JCET Group and Zangge Holding 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 JCET Group with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCET Group and Zangge Holding.
Diversification Opportunities for JCET Group and Zangge Holding
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JCET and Zangge is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding JCET Group Co and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and JCET Group 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 JCET Group Co are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of JCET Group i.e., JCET Group and Zangge Holding go up and down completely randomly.
Pair Corralation between JCET Group and Zangge Holding
Assuming the 90 days trading horizon JCET Group Co is expected to generate 1.35 times more return on investment than Zangge Holding. However, JCET Group is 1.35 times more volatile than Zangge Holding Co. It trades about 0.05 of its potential returns per unit of risk. Zangge Holding Co is currently generating about 0.03 per unit of risk. If you would invest 2,386 in JCET Group Co on September 26, 2024 and sell it today you would earn a total of 1,538 from holding JCET Group Co or generate 64.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
JCET Group Co vs. Zangge Holding Co
Performance |
| Timeline |
| JCET Group |
| Zangge Holding |
JCET Group and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCET Group and Zangge Holding
The main advantage of trading using opposite JCET Group and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCET Group position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi Technologies |
| Zangge Holding vs. Guangdong Shenglu Telecommunication | Zangge Holding vs. Gan Yuan Foods | Zangge Holding vs. Qingdao Foods Co | Zangge Holding vs. Fiberhome Telecommunication Technologies |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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