Correlation Between Zhejiang Daily and A Zenith
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By analyzing existing cross correlation between Zhejiang Daily Media and A Zenith Home Furnishings, you can compare the effects of market volatilities on Zhejiang Daily and A Zenith 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 A Zenith. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and A Zenith.
Diversification Opportunities for Zhejiang Daily and A Zenith
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and 603389 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media and A Zenith Home Furnishings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Zenith Home 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 A Zenith. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Zenith Home has no effect on the direction of Zhejiang Daily i.e., Zhejiang Daily and A Zenith go up and down completely randomly.
Pair Corralation between Zhejiang Daily and A Zenith
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to generate 1.97 times more return on investment than A Zenith. However, Zhejiang Daily is 1.97 times more volatile than A Zenith Home Furnishings. It trades about 0.29 of its potential returns per unit of risk. A Zenith Home Furnishings is currently generating about 0.41 per unit of risk. If you would invest 1,123 in Zhejiang Daily Media on November 29, 2024 and sell it today you would earn a total of 411.00 from holding Zhejiang Daily Media or generate 36.6% 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. A Zenith Home Furnishings
Performance |
| Timeline |
| Zhejiang Daily Media |
| A Zenith Home |
Zhejiang Daily and A Zenith Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Daily and A Zenith
The main advantage of trading using opposite Zhejiang Daily and A Zenith positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily position performs unexpectedly, A Zenith 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 A Zenith will offset losses from the drop in A Zenith's long position.| Zhejiang Daily vs. Duzhe Publishing Media | Zhejiang Daily vs. Heilongjiang Publishing Media | Zhejiang Daily vs. Tangel Publishing | Zhejiang Daily vs. Shanghai V Test Semiconductor |
| A Zenith vs. Weihai Honglin Electronic | A Zenith vs. Fujian Nebula Electronics | A Zenith vs. Hangzhou Zhongya Machinery | A Zenith vs. Baoding Dongli Machinery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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