Correlation Between Shandong Publishing and Zhejiang Publishing
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By analyzing existing cross correlation between Shandong Publishing Media and Zhejiang Publishing Media, you can compare the effects of market volatilities on Shandong Publishing and Zhejiang Publishing 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 Shandong Publishing with a short position of Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Zhejiang Publishing.
Diversification Opportunities for Shandong Publishing and Zhejiang Publishing
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Zhejiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Shandong Publishing and Zhejiang Publishing
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 1.61 times more return on investment than Zhejiang Publishing. However, Shandong Publishing is 1.61 times more volatile than Zhejiang Publishing Media. It trades about -0.27 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about -0.64 per unit of risk. If you would invest 1,149 in Shandong Publishing Media on October 15, 2024 and sell it today you would lose (139.00) from holding Shandong Publishing Media or give up 12.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Shandong Publishing Media |
| Zhejiang Publishing Media |
Shandong Publishing and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Zhejiang Publishing
The main advantage of trading using opposite Shandong Publishing and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Zhejiang Publishing 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 Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Shandong Publishing vs. Hangzhou Gaoxin Rubber | Shandong Publishing vs. Jiangnan Mould Plastic | Shandong Publishing vs. Orinko Advanced Plastics | Shandong Publishing vs. Penyao Environmental Protection |
| Zhejiang Publishing vs. Heilongjiang Transport Development | Zhejiang Publishing vs. Shanghai Jinfeng Wine | Zhejiang Publishing vs. Dazhong Transportation Group | Zhejiang Publishing vs. Citic Guoan Wine |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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