Correlation Between Sichuan Hebang and Zhejiang Century
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Zhejiang Century Huatong, you can compare the effects of market volatilities on Sichuan Hebang and Zhejiang Century 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 Sichuan Hebang with a short position of Zhejiang Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Zhejiang Century.
Diversification Opportunities for Sichuan Hebang and Zhejiang Century
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sichuan and Zhejiang is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology and Zhejiang Century Huatong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Century Huatong and Sichuan Hebang 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 Sichuan Hebang Biotechnology are associated (or correlated) with Zhejiang Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Century Huatong has no effect on the direction of Sichuan Hebang i.e., Sichuan Hebang and Zhejiang Century go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Zhejiang Century
Assuming the 90 days trading horizon Sichuan Hebang is expected to generate 3.97 times less return on investment than Zhejiang Century. But when comparing it to its historical volatility, Sichuan Hebang Biotechnology is 1.3 times less risky than Zhejiang Century. It trades about 0.05 of its potential returns per unit of risk. Zhejiang Century Huatong is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 317.00 in Zhejiang Century Huatong on November 3, 2024 and sell it today you would earn a total of 187.00 from holding Zhejiang Century Huatong or generate 58.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.16% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Zhejiang Century Huatong
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Zhejiang Century Huatong |
Sichuan Hebang and Zhejiang Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Zhejiang Century
The main advantage of trading using opposite Sichuan Hebang and Zhejiang Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang position performs unexpectedly, Zhejiang Century 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 Zhejiang Century will offset losses from the drop in Zhejiang Century's long position.| Sichuan Hebang vs. Guangzhou KingTeller Technology | Sichuan Hebang vs. Chengdu Spaceon Electronics | Sichuan Hebang vs. Montage Technology Co | Sichuan Hebang vs. Kuang Chi Technologies |
| Zhejiang Century vs. Newcapec Electronics Co | Zhejiang Century vs. Shenzhen Centralcon Investment | Zhejiang Century vs. Luyin Investment Group | Zhejiang Century vs. Ningbo Kangqiang Electronics |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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