Correlation Between Zhejiang Publishing and First Capital
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By analyzing existing cross correlation between Zhejiang Publishing Media and First Capital Securities, you can compare the effects of market volatilities on Zhejiang Publishing and First Capital 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 First Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and First Capital.
Diversification Opportunities for Zhejiang Publishing and First Capital
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and First is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and First Capital Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Capital Securities 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 First Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Capital Securities has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and First Capital go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and First Capital
Assuming the 90 days trading horizon Zhejiang Publishing is expected to generate 1.78 times less return on investment than First Capital. In addition to that, Zhejiang Publishing is 1.19 times more volatile than First Capital Securities. It trades about 0.02 of its total potential returns per unit of risk. First Capital Securities is currently generating about 0.04 per unit of volatility. If you would invest 595.00 in First Capital Securities on October 29, 2024 and sell it today you would earn a total of 202.00 from holding First Capital Securities or generate 33.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. First Capital Securities
Performance |
| Timeline |
| Zhejiang Publishing Media |
| First Capital Securities |
Zhejiang Publishing and First Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and First Capital
The main advantage of trading using opposite Zhejiang Publishing and First Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, First Capital 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 First Capital will offset losses from the drop in First Capital's long position.| Zhejiang Publishing vs. Zijin Mining Group | Zhejiang Publishing vs. Liaoning Chengda Biotechnology | Zhejiang Publishing vs. Changchun BCHT Biotechnology | Zhejiang Publishing vs. Tibet Huayu Mining |
| First Capital vs. Anhui Guofeng Plastic | First Capital vs. Fuda Alloy Materials | First Capital vs. Malion New Materials | First Capital vs. Konfoong Materials International |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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