Correlation Between Zhejiang Publishing and Guotai Epoint
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By analyzing existing cross correlation between Zhejiang Publishing Media and Guotai Epoint Software, you can compare the effects of market volatilities on Zhejiang Publishing and Guotai Epoint 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 Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Guotai Epoint.
Diversification Opportunities for Zhejiang Publishing and Guotai Epoint
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Guotai is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint 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 Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Guotai Epoint go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Guotai Epoint
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to generate 0.7 times more return on investment than Guotai Epoint. However, Zhejiang Publishing Media is 1.43 times less risky than Guotai Epoint. It trades about 0.0 of its potential returns per unit of risk. Guotai Epoint Software is currently generating about -0.01 per unit of risk. If you would invest 790.00 in Zhejiang Publishing Media on October 16, 2024 and sell it today you would lose (62.00) from holding Zhejiang Publishing Media or give up 7.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Guotai Epoint Software
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Guotai Epoint Software |
Zhejiang Publishing and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Guotai Epoint
The main advantage of trading using opposite Zhejiang Publishing and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint'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 |
| Guotai Epoint vs. China Life Insurance | Guotai Epoint vs. Cinda Securities Co | Guotai Epoint vs. Piotech Inc A | Guotai Epoint vs. Dongxing Sec 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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