Correlation Between Sichuan Hebang and Zhejiang Century
Specify exactly 2 symbols:
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
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Zhejiang is 0.85. 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 Biotechnology is expected to generate 1.14 times more return on investment than Zhejiang Century. However, Sichuan Hebang is 1.14 times more volatile than Zhejiang Century Huatong. It trades about 0.12 of its potential returns per unit of risk. Zhejiang Century Huatong is currently generating about -0.1 per unit of risk. If you would invest 220.00 in Sichuan Hebang Biotechnology on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Sichuan Hebang Biotechnology or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| 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. Zijin Mining Group | Sichuan Hebang vs. Wanhua Chemical Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Rongsheng Petrochemical Co |
| Zhejiang Century vs. StarPower Semiconductor | Zhejiang Century vs. Ningbo Tip Rubber | Zhejiang Century vs. Tianjin Pengling Rubber | Zhejiang Century vs. Heilongjiang Transport Development |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |