Correlation Between Shandong Sinoglory and Zoje Resources
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By analyzing existing cross correlation between Shandong Sinoglory Health and Zoje Resources Investment, you can compare the effects of market volatilities on Shandong Sinoglory and Zoje Resources 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 Shandong Sinoglory with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Zoje Resources.
Diversification Opportunities for Shandong Sinoglory and Zoje Resources
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Zoje is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and Shandong Sinoglory 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 Shandong Sinoglory Health are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Shandong Sinoglory i.e., Shandong Sinoglory and Zoje Resources go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Zoje Resources
Assuming the 90 days trading horizon Shandong Sinoglory Health is expected to under-perform the Zoje Resources. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Sinoglory Health is 2.11 times less risky than Zoje Resources. The stock trades about -0.02 of its potential returns per unit of risk. The Zoje Resources Investment is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Zoje Resources Investment on October 14, 2024 and sell it today you would earn a total of 58.00 from holding Zoje Resources Investment or generate 31.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Zoje Resources Investment
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Zoje Resources Investment |
Shandong Sinoglory and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Zoje Resources
The main advantage of trading using opposite Shandong Sinoglory and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Shandong Sinoglory vs. Guangxi Wuzhou Communications | Shandong Sinoglory vs. Jilin Chemical Fibre | Shandong Sinoglory vs. Wuxi Chemical Equipment | Shandong Sinoglory vs. Quectel Wireless Solutions |
| Zoje Resources vs. Humanwell Healthcare Group | Zoje Resources vs. Mingchen Health Co | Zoje Resources vs. Liuzhou Chemical Industry | Zoje Resources vs. Shandong Sinoglory Health |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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