Correlation Between Shandong Publishing and Zhangjiagang Elegant
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By analyzing existing cross correlation between Shandong Publishing Media and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Shandong Publishing and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Zhangjiagang Elegant.
Diversification Opportunities for Shandong Publishing and Zhangjiagang Elegant
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Zhangjiagang is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Shandong Publishing and Zhangjiagang Elegant
Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the Zhangjiagang Elegant. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Publishing Media is 1.01 times less risky than Zhangjiagang Elegant. The stock trades about -0.06 of its potential returns per unit of risk. The Zhangjiagang Elegant Home is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Zhangjiagang Elegant Home on November 3, 2024 and sell it today you would earn a total of 48.00 from holding Zhangjiagang Elegant Home or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| Shandong Publishing Media |
| Zhangjiagang Elegant Home |
Shandong Publishing and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Zhangjiagang Elegant
The main advantage of trading using opposite Shandong Publishing and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| Shandong Publishing vs. Guocheng Mining Co | Shandong Publishing vs. Cultural Investment Holdings | Shandong Publishing vs. Bohai Leasing Co | Shandong Publishing vs. Chengdu Xingrong Investment |
| Zhangjiagang Elegant vs. Industrial and Commercial | Zhangjiagang Elegant vs. Agricultural Bank of | Zhangjiagang Elegant vs. Bank of China | Zhangjiagang Elegant vs. Postal Savings Bank |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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