Correlation Between Cinda Securities and Zhejiang Daily
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By analyzing existing cross correlation between Cinda Securities Co and Zhejiang Daily Media, you can compare the effects of market volatilities on Cinda Securities and Zhejiang Daily 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 Cinda Securities with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Zhejiang Daily.
Diversification Opportunities for Cinda Securities and Zhejiang Daily
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Zhejiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Cinda Securities i.e., Cinda Securities and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Cinda Securities and Zhejiang Daily
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Zhejiang Daily. In addition to that, Cinda Securities is 1.04 times more volatile than Zhejiang Daily Media. It trades about -0.16 of its total potential returns per unit of risk. Zhejiang Daily Media is currently generating about -0.17 per unit of volatility. If you would invest 1,070 in Zhejiang Daily Media on October 23, 2024 and sell it today you would lose (89.00) from holding Zhejiang Daily Media or give up 8.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Zhejiang Daily Media
Performance |
| Timeline |
| Cinda Securities |
| Zhejiang Daily Media |
Cinda Securities and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Zhejiang Daily
The main advantage of trading using opposite Cinda Securities and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Zhejiang Daily 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 Daily will offset losses from the drop in Zhejiang Daily's long position.| Cinda Securities vs. Changchun Engley Automobile | Cinda Securities vs. Shenyang Chemical Industry | Cinda Securities vs. Songz Automobile Air | Cinda Securities vs. Shenzhen Noposion Agrochemicals |
| Zhejiang Daily vs. Xinjiang Baodi Mining | Zhejiang Daily vs. Soochow Suzhou Industrial | Zhejiang Daily vs. Qingdao Choho Industrial | Zhejiang Daily vs. Ingenic Semiconductor |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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