Correlation Between Zhejiang Publishing and Shandong Longquan
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By analyzing existing cross correlation between Zhejiang Publishing Media and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Zhejiang Publishing and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Shandong Longquan.
Diversification Opportunities for Zhejiang Publishing and Shandong Longquan
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Shandong is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Shandong Longquan go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Shandong Longquan
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Shandong Longquan. In addition to that, Zhejiang Publishing is 1.03 times more volatile than Shandong Longquan Pipeline. It trades about -0.13 of its total potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.03 per unit of volatility. If you would invest 450.00 in Shandong Longquan Pipeline on August 26, 2024 and sell it today you would earn a total of 5.00 from holding Shandong Longquan Pipeline or generate 1.11% 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. Shandong Longquan Pipeline
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Shandong Longquan |
Zhejiang Publishing and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Shandong Longquan
The main advantage of trading using opposite Zhejiang Publishing and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| Zhejiang Publishing vs. Shandong Longquan Pipeline | Zhejiang Publishing vs. Cangzhou Mingzhu Plastic | Zhejiang Publishing vs. Suzhou Douson Drilling | Zhejiang Publishing vs. Zhongyin Babi Food |
| Shandong Longquan vs. Zijin Mining Group | Shandong Longquan vs. Wanhua Chemical Group | Shandong Longquan vs. Baoshan Iron Steel | Shandong Longquan vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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