Correlation Between Zhejiang Publishing and Kuangda Technology
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By analyzing existing cross correlation between Zhejiang Publishing Media and Kuangda Technology Group, you can compare the effects of market volatilities on Zhejiang Publishing and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Kuangda Technology.
Diversification Opportunities for Zhejiang Publishing and Kuangda Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Kuangda is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Kuangda Technology go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Kuangda Technology
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to generate 0.53 times more return on investment than Kuangda Technology. However, Zhejiang Publishing Media is 1.9 times less risky than Kuangda Technology. It trades about -0.47 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.27 per unit of risk. If you would invest 871.00 in Zhejiang Publishing Media on October 17, 2024 and sell it today you would lose (128.00) from holding Zhejiang Publishing Media or give up 14.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Kuangda Technology Group
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Kuangda Technology |
Zhejiang Publishing and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Kuangda Technology
The main advantage of trading using opposite Zhejiang Publishing and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Zhejiang Publishing vs. Do Fluoride Chemicals Co | Zhejiang Publishing vs. Chengdu Xingrong Investment | Zhejiang Publishing vs. Xiandai Investment Co | Zhejiang Publishing vs. Kunwu Jiuding Investment |
| Kuangda Technology vs. Xiamen Jihong Package | Kuangda Technology vs. Shanghai Action Education | Kuangda Technology vs. Zhejiang Publishing Media | Kuangda Technology vs. Jiahe Foods Industry |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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