Correlation Between Zhejiang Publishing and Shanghai Pudong
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By analyzing existing cross correlation between Zhejiang Publishing Media and Shanghai Pudong Development, you can compare the effects of market volatilities on Zhejiang Publishing and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Shanghai Pudong.
Diversification Opportunities for Zhejiang Publishing and Shanghai Pudong
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Shanghai is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Shanghai Pudong
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Shanghai Pudong. In addition to that, Zhejiang Publishing is 1.18 times more volatile than Shanghai Pudong Development. It trades about -0.49 of its total potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.18 per unit of volatility. If you would invest 966.00 in Shanghai Pudong Development on October 14, 2024 and sell it today you would earn a total of 47.00 from holding Shanghai Pudong Development or generate 4.87% 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. Shanghai Pudong Development
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Shanghai Pudong Deve |
Zhejiang Publishing and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Shanghai Pudong
The main advantage of trading using opposite Zhejiang Publishing and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong's long position.| Zhejiang Publishing vs. Sino Platinum Metals Co | Zhejiang Publishing vs. Miracll Chemicals Co | Zhejiang Publishing vs. Dosilicon Co | Zhejiang Publishing vs. Shenzhen Noposion Agrochemicals |
| Shanghai Pudong vs. Zhejiang Publishing Media | Shanghai Pudong vs. Chengtun Mining Group | Shanghai Pudong vs. Jiangsu Phoenix Publishing | Shanghai Pudong vs. Qingdao Choho Industrial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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