Correlation Between Zhejiang Publishing and Xinjiang Communications
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By analyzing existing cross correlation between Zhejiang Publishing Media and Xinjiang Communications Construction, you can compare the effects of market volatilities on Zhejiang Publishing and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Xinjiang Communications.
Diversification Opportunities for Zhejiang Publishing and Xinjiang Communications
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Xinjiang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Xinjiang Communications
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to generate 0.87 times more return on investment than Xinjiang Communications. However, Zhejiang Publishing Media is 1.15 times less risky than Xinjiang Communications. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about -0.01 per unit of risk. If you would invest 756.00 in Zhejiang Publishing Media on September 12, 2024 and sell it today you would earn a total of 83.00 from holding Zhejiang Publishing Media or generate 10.98% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Xinjiang Communications |
Zhejiang Publishing and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Xinjiang Communications
The main advantage of trading using opposite Zhejiang Publishing and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' 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 |
| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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