Correlation Between Zhangjiagang Freetrade and Beijing Sanyuan
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By analyzing existing cross correlation between Zhangjiagang Freetrade Science and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Zhangjiagang Freetrade and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and Beijing Sanyuan.
Diversification Opportunities for Zhangjiagang Freetrade and Beijing Sanyuan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhangjiagang and Beijing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and Beijing Sanyuan
Assuming the 90 days trading horizon Zhangjiagang Freetrade Science is expected to generate 1.1 times more return on investment than Beijing Sanyuan. However, Zhangjiagang Freetrade is 1.1 times more volatile than Beijing Sanyuan Foods. It trades about 0.02 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about 0.0 per unit of risk. If you would invest 345.00 in Zhangjiagang Freetrade Science on November 7, 2024 and sell it today you would earn a total of 1.00 from holding Zhangjiagang Freetrade Science or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Freetrade Science vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Zhangjiagang Freetrade |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Beijing Sanyuan Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zhangjiagang Freetrade and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and Beijing Sanyuan
The main advantage of trading using opposite Zhangjiagang Freetrade and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Zhangjiagang Freetrade vs. Zhejiang Zanyu Technology | Zhangjiagang Freetrade vs. Shanghai SK Automation |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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