Correlation Between Industrial and Zhejiang Gongdong
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By analyzing existing cross correlation between Industrial and Commercial and Zhejiang Gongdong Medical, you can compare the effects of market volatilities on Industrial and Zhejiang Gongdong 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 Industrial with a short position of Zhejiang Gongdong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Zhejiang Gongdong.
Diversification Opportunities for Industrial and Zhejiang Gongdong
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrial and Zhejiang is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Zhejiang Gongdong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Gongdong Medical and Industrial 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 Industrial and Commercial are associated (or correlated) with Zhejiang Gongdong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Gongdong Medical has no effect on the direction of Industrial i.e., Industrial and Zhejiang Gongdong go up and down completely randomly.
Pair Corralation between Industrial and Zhejiang Gongdong
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate about the same return on investment as Zhejiang Gongdong Medical. But, Industrial and Commercial is 1.43 times less risky than Zhejiang Gongdong. It trades about 0.15 of its potential returns per unit of risk. Zhejiang Gongdong Medical is currently generating about 0.11 per unit of risk. If you would invest 2,800 in Zhejiang Gongdong Medical on November 7, 2024 and sell it today you would earn a total of 85.00 from holding Zhejiang Gongdong Medical or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Zhejiang Gongdong Medical
Performance |
| Timeline |
| Industrial and Commercial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Zhejiang Gongdong Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Industrial and Zhejiang Gongdong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Zhejiang Gongdong
The main advantage of trading using opposite Industrial and Zhejiang Gongdong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Zhejiang Gongdong 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 Gongdong will offset losses from the drop in Zhejiang Gongdong's long position.The idea behind Industrial and Commercial and Zhejiang Gongdong Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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