Correlation Between Senci Electric and Zhejiang Daily
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By analyzing existing cross correlation between Senci Electric Machinery and Zhejiang Daily Media, you can compare the effects of market volatilities on Senci Electric and Zhejiang Daily 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 Senci Electric with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Zhejiang Daily.
Diversification Opportunities for Senci Electric and Zhejiang Daily
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Senci and Zhejiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media and Senci Electric 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 Senci Electric Machinery are associated (or correlated) with Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Senci Electric i.e., Senci Electric and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Senci Electric and Zhejiang Daily
Assuming the 90 days trading horizon Senci Electric is expected to generate 1.43 times less return on investment than Zhejiang Daily. But when comparing it to its historical volatility, Senci Electric Machinery is 1.24 times less risky than Zhejiang Daily. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Daily Media is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 874.00 in Zhejiang Daily Media on September 26, 2024 and sell it today you would earn a total of 187.00 from holding Zhejiang Daily Media or generate 21.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. Zhejiang Daily Media
Performance |
| Timeline |
| Senci Electric Machinery |
| Zhejiang Daily Media |
Senci Electric and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Zhejiang Daily
The main advantage of trading using opposite Senci Electric and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric position performs unexpectedly, Zhejiang Daily 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 Daily will offset losses from the drop in Zhejiang Daily's long position.| Senci Electric vs. Hunan Investment Group | Senci Electric vs. China Life Insurance | Senci Electric vs. Postal Savings Bank | Senci Electric vs. Guangxi Wuzhou Communications |
| Zhejiang Daily vs. Western Metal Materials | Zhejiang Daily vs. Senci Electric Machinery | Zhejiang Daily vs. Xingguang Agricultural Mach | Zhejiang Daily vs. Kangxin New Materials |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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