Correlation Between Zhejiang Publishing and Gansu Huangtai
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By analyzing existing cross correlation between Zhejiang Publishing Media and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Zhejiang Publishing and Gansu Huangtai 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 Zhejiang Publishing with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Gansu Huangtai.
Diversification Opportunities for Zhejiang Publishing and Gansu Huangtai
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Gansu is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Zhejiang 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 Zhejiang Publishing Media are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Gansu Huangtai
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Publishing Media is 3.53 times less risky than Gansu Huangtai. The stock trades about -0.29 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,476 in Gansu Huangtai Wine marketing on October 11, 2024 and sell it today you would earn a total of 241.00 from holding Gansu Huangtai Wine marketing or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Gansu Huangtai Wine |
Zhejiang Publishing and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Gansu Huangtai
The main advantage of trading using opposite Zhejiang Publishing and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Zhejiang Publishing vs. Thinkingdom Media Group | Zhejiang Publishing vs. Sportsoul Co Ltd | Zhejiang Publishing vs. Beijing Enlight Media | Zhejiang Publishing vs. Threes Company Media |
| Gansu Huangtai vs. Zhongshan Public Utilities | Gansu Huangtai vs. Elite Color Environmental | Gansu Huangtai vs. GreenTech Environmental Co | Gansu Huangtai vs. Xiamen Goldenhome Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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