Correlation Between Zhejiang Daily and Henan Shuanghui
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By analyzing existing cross correlation between Zhejiang Daily Media and Henan Shuanghui Investment, you can compare the effects of market volatilities on Zhejiang Daily and Henan Shuanghui 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 Zhejiang Daily with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and Henan Shuanghui.
Diversification Opportunities for Zhejiang Daily and Henan Shuanghui
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Henan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and Zhejiang Daily 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 Zhejiang Daily Media are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Zhejiang Daily i.e., Zhejiang Daily and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Zhejiang Daily and Henan Shuanghui
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to generate 1.76 times more return on investment than Henan Shuanghui. However, Zhejiang Daily is 1.76 times more volatile than Henan Shuanghui Investment. It trades about 0.09 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.09 per unit of risk. If you would invest 818.00 in Zhejiang Daily Media on November 2, 2024 and sell it today you would earn a total of 203.00 from holding Zhejiang Daily Media or generate 24.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Daily Media vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Zhejiang Daily Media |
| Henan Shuanghui Inve |
Zhejiang Daily and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Daily and Henan Shuanghui
The main advantage of trading using opposite Zhejiang Daily and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Zhejiang Daily vs. Maoming Petro Chemical Shihua | Zhejiang Daily vs. HeBei Jinniu Chemical | Zhejiang Daily vs. Ningbo MedicalSystem Biotechnology | Zhejiang Daily vs. Shandong Rike Chemical |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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