Correlation Between Zhangjiagang Freetrade and HUANLEJIA Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhangjiagang Freetrade Science and HUANLEJIA Food Group, you can compare the effects of market volatilities on Zhangjiagang Freetrade and HUANLEJIA Food 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 Zhangjiagang Freetrade with a short position of HUANLEJIA Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and HUANLEJIA Food.
Diversification Opportunities for Zhangjiagang Freetrade and HUANLEJIA Food
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhangjiagang and HUANLEJIA is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science and HUANLEJIA Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUANLEJIA Food Group and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade Science are associated (or correlated) with HUANLEJIA Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUANLEJIA Food Group has no effect on the direction of Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and HUANLEJIA Food go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and HUANLEJIA Food
Assuming the 90 days trading horizon Zhangjiagang Freetrade is expected to generate 3.64 times less return on investment than HUANLEJIA Food. But when comparing it to its historical volatility, Zhangjiagang Freetrade Science is 2.59 times less risky than HUANLEJIA Food. It trades about 0.12 of its potential returns per unit of risk. HUANLEJIA Food Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,389 in HUANLEJIA Food Group on September 13, 2024 and sell it today you would earn a total of 355.00 from holding HUANLEJIA Food Group or generate 25.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Freetrade Science vs. HUANLEJIA Food Group
Performance |
| Timeline |
| Zhangjiagang Freetrade |
| HUANLEJIA Food Group |
Zhangjiagang Freetrade and HUANLEJIA Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and HUANLEJIA Food
The main advantage of trading using opposite Zhangjiagang Freetrade and HUANLEJIA Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade position performs unexpectedly, HUANLEJIA Food 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 HUANLEJIA Food will offset losses from the drop in HUANLEJIA Food's long position.| Zhangjiagang Freetrade vs. Shandong Iron and | Zhangjiagang Freetrade vs. Anhui Jianghuai Automobile | Zhangjiagang Freetrade vs. Xiangyang Automobile Bearing | Zhangjiagang Freetrade vs. Anyang Iron Steel |
| HUANLEJIA Food vs. Zhejiang JIULI Hi tech | HUANLEJIA Food vs. Shanghai Yanpu Metal | HUANLEJIA Food vs. Tongling Nonferrous Metals | HUANLEJIA Food vs. Guangdong Jingyi Metal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |