Correlation Between 360 Security and Zhongtong Guomai
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By analyzing existing cross correlation between 360 Security Technology and Zhongtong Guomai Communication, you can compare the effects of market volatilities on 360 Security and Zhongtong Guomai 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 360 Security with a short position of Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Security and Zhongtong Guomai.
Diversification Opportunities for 360 Security and Zhongtong Guomai
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 360 and Zhongtong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding 360 Security Technology and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com and 360 Security 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 360 Security Technology are associated (or correlated) with Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of 360 Security i.e., 360 Security and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between 360 Security and Zhongtong Guomai
Assuming the 90 days trading horizon 360 Security Technology is expected to generate 1.54 times more return on investment than Zhongtong Guomai. However, 360 Security is 1.54 times more volatile than Zhongtong Guomai Communication. It trades about 0.26 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.01 per unit of risk. If you would invest 935.00 in 360 Security Technology on September 5, 2024 and sell it today you would earn a total of 376.00 from holding 360 Security Technology or generate 40.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
360 Security Technology vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| 360 Security Technology |
| Zhongtong Guomai Com |
360 Security and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Security and Zhongtong Guomai
The main advantage of trading using opposite 360 Security and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Security position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| 360 Security vs. New China Life | 360 Security vs. Ming Yang Smart | 360 Security vs. 159681 | 360 Security vs. 159005 |
| Zhongtong Guomai vs. 360 Security Technology | Zhongtong Guomai vs. Tianshui Huatian Technology | Zhongtong Guomai vs. Sinofibers Technology Co | Zhongtong Guomai vs. Hoshine Silicon Ind |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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