Correlation Between Zhangjiagang Elegant and Zhejiang Juhua
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By analyzing existing cross correlation between Zhangjiagang Elegant Home and Zhejiang Juhua Co, you can compare the effects of market volatilities on Zhangjiagang Elegant and Zhejiang Juhua 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 Zhangjiagang Elegant with a short position of Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Elegant and Zhejiang Juhua.
Diversification Opportunities for Zhangjiagang Elegant and Zhejiang Juhua
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhangjiagang and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Elegant Home and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua and Zhangjiagang Elegant 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 Zhangjiagang Elegant Home are associated (or correlated) with Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Zhangjiagang Elegant i.e., Zhangjiagang Elegant and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Zhangjiagang Elegant and Zhejiang Juhua
Assuming the 90 days trading horizon Zhangjiagang Elegant is expected to generate 1.59 times less return on investment than Zhejiang Juhua. In addition to that, Zhangjiagang Elegant is 1.4 times more volatile than Zhejiang Juhua Co. It trades about 0.03 of its total potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.07 per unit of volatility. If you would invest 1,520 in Zhejiang Juhua Co on September 15, 2024 and sell it today you would earn a total of 693.00 from holding Zhejiang Juhua Co or generate 45.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Elegant Home vs. Zhejiang Juhua Co
Performance |
| Timeline |
| Zhangjiagang Elegant Home |
| Zhejiang Juhua |
Zhangjiagang Elegant and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Elegant and Zhejiang Juhua
The main advantage of trading using opposite Zhangjiagang Elegant and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Elegant position performs unexpectedly, Zhejiang Juhua 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 Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Zhangjiagang Elegant vs. China State Construction | Zhangjiagang Elegant vs. Poly Real Estate | Zhangjiagang Elegant vs. China Vanke Co | Zhangjiagang Elegant vs. China Merchants Shekou |
| Zhejiang Juhua vs. Zoy Home Furnishing | Zhejiang Juhua vs. Yonyou Auto Information | Zhejiang Juhua vs. Zhangjiagang Elegant Home | Zhejiang Juhua vs. Xiamen Goldenhome Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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