Correlation Between Zhejiang Publishing and Liuzhou Chemical
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By analyzing existing cross correlation between Zhejiang Publishing Media and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Zhejiang Publishing and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Liuzhou Chemical.
Diversification Opportunities for Zhejiang Publishing and Liuzhou Chemical
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Liuzhou is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Liuzhou Chemical
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Liuzhou Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Publishing Media is 1.87 times less risky than Liuzhou Chemical. The stock trades about -0.07 of its potential returns per unit of risk. The Liuzhou Chemical Industry is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 281.00 in Liuzhou Chemical Industry on October 17, 2024 and sell it today you would earn a total of 58.00 from holding Liuzhou Chemical Industry or generate 20.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Liuzhou Chemical Industry
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Liuzhou Chemical Industry |
Zhejiang Publishing and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Liuzhou Chemical
The main advantage of trading using opposite Zhejiang Publishing and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| Zhejiang Publishing vs. YiDong Electronics Technology | Zhejiang Publishing vs. Anhui Shiny Electronic | Zhejiang Publishing vs. TongFu Microelectronics Co | Zhejiang Publishing vs. Aurora Optoelectronics Co |
| Liuzhou Chemical vs. Zhejiang Publishing Media | Liuzhou Chemical vs. Henan Shuanghui Investment | Liuzhou Chemical vs. Heilongjiang Publishing Media | Liuzhou Chemical vs. Tangel Publishing |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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