Correlation Between Zhejiang Daily and Beken Corp
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By analyzing existing cross correlation between Zhejiang Daily Media and Beken Corp, you can compare the effects of market volatilities on Zhejiang Daily and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and Beken Corp.
Diversification Opportunities for Zhejiang Daily and Beken Corp
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Beken is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Zhejiang Daily i.e., Zhejiang Daily and Beken Corp go up and down completely randomly.
Pair Corralation between Zhejiang Daily and Beken Corp
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to generate 1.07 times more return on investment than Beken Corp. However, Zhejiang Daily is 1.07 times more volatile than Beken Corp. It trades about 0.03 of its potential returns per unit of risk. Beken Corp is currently generating about 0.02 per unit of risk. If you would invest 874.00 in Zhejiang Daily Media on September 26, 2024 and sell it today you would earn a total of 187.00 from holding Zhejiang Daily Media or generate 21.4% 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. Beken Corp
Performance |
| Timeline |
| Zhejiang Daily Media |
| Beken Corp |
Zhejiang Daily and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Daily and Beken Corp
The main advantage of trading using opposite Zhejiang Daily and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| Zhejiang Daily vs. Western Metal Materials | Zhejiang Daily vs. Senci Electric Machinery | Zhejiang Daily vs. Xingguang Agricultural Mach | Zhejiang Daily vs. Kangxin New Materials |
| Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp vs. Bank of China |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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