Correlation Between Zhejiang Publishing and Sichuan Jinshi
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By analyzing existing cross correlation between Zhejiang Publishing Media and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Zhejiang Publishing and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Sichuan Jinshi.
Diversification Opportunities for Zhejiang Publishing and Sichuan Jinshi
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Sichuan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Sichuan Jinshi
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to generate 0.99 times more return on investment than Sichuan Jinshi. However, Zhejiang Publishing Media is 1.02 times less risky than Sichuan Jinshi. It trades about 0.02 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of risk. If you would invest 697.00 in Zhejiang Publishing Media on October 25, 2024 and sell it today you would earn a total of 43.00 from holding Zhejiang Publishing Media or generate 6.17% 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. Sichuan Jinshi Technology
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Sichuan Jinshi Technology |
Zhejiang Publishing and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Sichuan Jinshi
The main advantage of trading using opposite Zhejiang Publishing and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Zhejiang Publishing vs. Industrial and Commercial | Zhejiang Publishing vs. Agricultural Bank of | Zhejiang Publishing vs. China Construction Bank | Zhejiang Publishing vs. Bank of China |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Rongsheng Petrochemical Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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