Correlation Between Zhangjiagang Freetrade and Zhongtai Securities
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By analyzing existing cross correlation between Zhangjiagang Freetrade Science and Zhongtai Securities Co, you can compare the effects of market volatilities on Zhangjiagang Freetrade and Zhongtai Securities 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 Zhongtai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and Zhongtai Securities.
Diversification Opportunities for Zhangjiagang Freetrade and Zhongtai Securities
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhangjiagang and Zhongtai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science and Zhongtai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtai Securities 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 Zhongtai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtai Securities has no effect on the direction of Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and Zhongtai Securities go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and Zhongtai Securities
Assuming the 90 days trading horizon Zhangjiagang Freetrade Science is expected to generate 1.36 times more return on investment than Zhongtai Securities. However, Zhangjiagang Freetrade is 1.36 times more volatile than Zhongtai Securities Co. It trades about 0.2 of its potential returns per unit of risk. Zhongtai Securities Co is currently generating about 0.08 per unit of risk. If you would invest 338.00 in Zhangjiagang Freetrade Science on September 2, 2024 and sell it today you would earn a total of 45.00 from holding Zhangjiagang Freetrade Science or generate 13.31% 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. Zhongtai Securities Co
Performance |
| Timeline |
| Zhangjiagang Freetrade |
| Zhongtai Securities |
Zhangjiagang Freetrade and Zhongtai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and Zhongtai Securities
The main advantage of trading using opposite Zhangjiagang Freetrade and Zhongtai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade position performs unexpectedly, Zhongtai Securities 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 Zhongtai Securities will offset losses from the drop in Zhongtai Securities' long position.| Zhangjiagang Freetrade vs. Industrial and Commercial | Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. China Construction Bank | Zhangjiagang Freetrade 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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