Correlation Between Sunny Loan and Zhejiang Tongxing
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By analyzing existing cross correlation between Sunny Loan Top and Zhejiang Tongxing Technology, you can compare the effects of market volatilities on Sunny Loan and Zhejiang Tongxing 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 Sunny Loan with a short position of Zhejiang Tongxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Zhejiang Tongxing.
Diversification Opportunities for Sunny Loan and Zhejiang Tongxing
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunny and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Zhejiang Tongxing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tongxing and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with Zhejiang Tongxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tongxing has no effect on the direction of Sunny Loan i.e., Sunny Loan and Zhejiang Tongxing go up and down completely randomly.
Pair Corralation between Sunny Loan and Zhejiang Tongxing
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Zhejiang Tongxing. But the stock apears to be less risky and, when comparing its historical volatility, Sunny Loan Top is 1.17 times less risky than Zhejiang Tongxing. The stock trades about -0.02 of its potential returns per unit of risk. The Zhejiang Tongxing Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,976 in Zhejiang Tongxing Technology on September 12, 2024 and sell it today you would lose (10.00) from holding Zhejiang Tongxing Technology or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Zhejiang Tongxing Technology
Performance |
| Timeline |
| Sunny Loan Top |
| Zhejiang Tongxing |
Sunny Loan and Zhejiang Tongxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Zhejiang Tongxing
The main advantage of trading using opposite Sunny Loan and Zhejiang Tongxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Zhejiang Tongxing 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 Zhejiang Tongxing will offset losses from the drop in Zhejiang Tongxing's long position.| Sunny Loan vs. Lutian Machinery Co | Sunny Loan vs. PetroChina Co Ltd | Sunny Loan vs. Bank of China | Sunny Loan vs. Gansu Jiu Steel |
| Zhejiang Tongxing vs. Sunny Loan Top | Zhejiang Tongxing vs. Sportsoul Co Ltd | Zhejiang Tongxing vs. Metro Investment Development | Zhejiang Tongxing vs. Zhejiang Construction Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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