Correlation Between New China and Zhangjiagang Freetrade
Specify exactly 2 symbols:
By analyzing existing cross correlation between New China Life and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on New China and Zhangjiagang Freetrade 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 New China with a short position of Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Zhangjiagang Freetrade.
Diversification Opportunities for New China and Zhangjiagang Freetrade
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Zhangjiagang is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade and New China 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 New China Life are associated (or correlated) with Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of New China i.e., New China and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between New China and Zhangjiagang Freetrade
Assuming the 90 days trading horizon New China Life is expected to generate 1.34 times more return on investment than Zhangjiagang Freetrade. However, New China is 1.34 times more volatile than Zhangjiagang Freetrade Science. It trades about 0.13 of its potential returns per unit of risk. Zhangjiagang Freetrade Science is currently generating about 0.04 per unit of risk. If you would invest 4,568 in New China Life on November 6, 2024 and sell it today you would earn a total of 195.00 from holding New China Life or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| New China Life |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Zhangjiagang Freetrade |
New China and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Zhangjiagang Freetrade
The main advantage of trading using opposite New China and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China position performs unexpectedly, Zhangjiagang Freetrade 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 Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| New China vs. Sanbo Hospital Management | New China vs. De Rucci Healthy | New China vs. Heren Health Co | New China vs. Hengli Industrial Development |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |