Correlation Between Jiangsu Flowers and Zhongzhu Medical
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By analyzing existing cross correlation between Jiangsu Flowers King and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Jiangsu Flowers and Zhongzhu Medical 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 Jiangsu Flowers with a short position of Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Flowers and Zhongzhu Medical.
Diversification Opportunities for Jiangsu Flowers and Zhongzhu Medical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Zhongzhu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Flowers King and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings and Jiangsu Flowers 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 Jiangsu Flowers King are associated (or correlated) with Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Jiangsu Flowers i.e., Jiangsu Flowers and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Jiangsu Flowers and Zhongzhu Medical
Assuming the 90 days trading horizon Jiangsu Flowers King is expected to generate 4.2 times more return on investment than Zhongzhu Medical. However, Jiangsu Flowers is 4.2 times more volatile than Zhongzhu Medical Holdings. It trades about -0.03 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.28 per unit of risk. If you would invest 1,288 in Jiangsu Flowers King on October 24, 2024 and sell it today you would lose (177.00) from holding Jiangsu Flowers King or give up 13.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Flowers King vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Jiangsu Flowers King |
| Zhongzhu Medical Holdings |
Jiangsu Flowers and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Flowers and Zhongzhu Medical
The main advantage of trading using opposite Jiangsu Flowers and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Flowers position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Jiangsu Flowers vs. Do Fluoride Chemicals Co | Jiangsu Flowers vs. Andon Health Co | Jiangsu Flowers vs. Yingde Greatchem Chemicals | Jiangsu Flowers vs. Hangzhou Minsheng Healthcare |
| Zhongzhu Medical vs. Xiangyu Medical Co | Zhongzhu Medical vs. Winner Medical Co | Zhongzhu Medical vs. Guangdong Transtek Medical | Zhongzhu Medical vs. Fiberhome Telecommunication Technologies |
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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