Correlation Between Zhejiang Publishing and Fujian Boss
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By analyzing existing cross correlation between Zhejiang Publishing Media and Fujian Boss Software, you can compare the effects of market volatilities on Zhejiang Publishing and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Fujian Boss.
Diversification Opportunities for Zhejiang Publishing and Fujian Boss
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Fujian is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Fujian Boss go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Fujian Boss
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to generate 0.52 times more return on investment than Fujian Boss. However, Zhejiang Publishing Media is 1.92 times less risky than Fujian Boss. It trades about -0.42 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.32 per unit of risk. If you would invest 825.00 in Zhejiang Publishing Media on October 25, 2024 and sell it today you would lose (85.00) from holding Zhejiang Publishing Media or give up 10.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Fujian Boss Software
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Fujian Boss Software |
Zhejiang Publishing and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Fujian Boss
The main advantage of trading using opposite Zhejiang Publishing and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' 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 |
| Fujian Boss vs. Kweichow Moutai Co | Fujian Boss vs. NAURA Technology Group | Fujian Boss vs. APT Medical | Fujian Boss vs. BYD 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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