Correlation Between Zhejiang Publishing and Guangzhou Haige
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By analyzing existing cross correlation between Zhejiang Publishing Media and Guangzhou Haige Communications, you can compare the effects of market volatilities on Zhejiang Publishing and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Guangzhou Haige.
Diversification Opportunities for Zhejiang Publishing and Guangzhou Haige
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Guangzhou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Guangzhou Haige
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to generate 0.78 times more return on investment than Guangzhou Haige. However, Zhejiang Publishing Media is 1.28 times less risky than Guangzhou Haige. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.08 per unit of risk. If you would invest 835.00 in Zhejiang Publishing Media on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Zhejiang Publishing Media or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Guangzhou Haige Comm |
Zhejiang Publishing and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Guangzhou Haige
The main advantage of trading using opposite Zhejiang Publishing and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.| Zhejiang Publishing vs. Kweichow Moutai Co | Zhejiang Publishing vs. Shenzhen Mindray Bio Medical | Zhejiang Publishing vs. G bits Network Technology | Zhejiang Publishing vs. Beijing Roborock Technology |
| Guangzhou Haige vs. Gansu Jiu Steel | Guangzhou Haige vs. Shandong Mining Machinery | Guangzhou Haige vs. Aba Chemicals Corp | Guangzhou Haige vs. BlueFocus Communication Group |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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