Correlation Between Zhejiang Daily and Shengtak New
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By analyzing existing cross correlation between Zhejiang Daily Media and Shengtak New Material, you can compare the effects of market volatilities on Zhejiang Daily and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and Shengtak New.
Diversification Opportunities for Zhejiang Daily and Shengtak New
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Shengtak is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Zhejiang Daily i.e., Zhejiang Daily and Shengtak New go up and down completely randomly.
Pair Corralation between Zhejiang Daily and Shengtak New
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to generate 0.93 times more return on investment than Shengtak New. However, Zhejiang Daily Media is 1.08 times less risky than Shengtak New. It trades about 0.03 of its potential returns per unit of risk. Shengtak New Material is currently generating about 0.02 per unit of risk. If you would invest 844.00 in Zhejiang Daily Media on September 28, 2024 and sell it today you would earn a total of 242.00 from holding Zhejiang Daily Media or generate 28.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Daily Media vs. Shengtak New Material
Performance |
| Timeline |
| Zhejiang Daily Media |
| Shengtak New Material |
Zhejiang Daily and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Daily and Shengtak New
The main advantage of trading using opposite Zhejiang Daily and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Zhejiang Daily vs. Guosheng Financial Holding | Zhejiang Daily vs. Juneyao Airlines | Zhejiang Daily vs. Chinese Universe Publishing | Zhejiang Daily vs. Financial Street Holdings |
| Shengtak New vs. Peoples Insurance of | Shengtak New vs. Anhui Deli Household | Shengtak New vs. Harvest Fund Management | Shengtak New vs. Marssenger Kitchenware Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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