Correlation Between Zhangjiagang Elegant and AUPU Home
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By analyzing existing cross correlation between Zhangjiagang Elegant Home and AUPU Home Style, you can compare the effects of market volatilities on Zhangjiagang Elegant and AUPU Home 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 AUPU Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Elegant and AUPU Home.
Diversification Opportunities for Zhangjiagang Elegant and AUPU Home
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhangjiagang and AUPU is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Elegant Home and AUPU Home Style in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUPU Home Style 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 AUPU Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUPU Home Style has no effect on the direction of Zhangjiagang Elegant i.e., Zhangjiagang Elegant and AUPU Home go up and down completely randomly.
Pair Corralation between Zhangjiagang Elegant and AUPU Home
Assuming the 90 days trading horizon Zhangjiagang Elegant Home is expected to generate 0.93 times more return on investment than AUPU Home. However, Zhangjiagang Elegant Home is 1.08 times less risky than AUPU Home. It trades about 0.3 of its potential returns per unit of risk. AUPU Home Style is currently generating about -0.01 per unit of risk. If you would invest 858.00 in Zhangjiagang Elegant Home on November 7, 2024 and sell it today you would earn a total of 97.00 from holding Zhangjiagang Elegant Home or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Elegant Home vs. AUPU Home Style
Performance |
| Timeline |
| Zhangjiagang Elegant Home |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AUPU Home Style |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zhangjiagang Elegant and AUPU Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Elegant and AUPU Home
The main advantage of trading using opposite Zhangjiagang Elegant and AUPU Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Elegant position performs unexpectedly, AUPU Home 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 AUPU Home will offset losses from the drop in AUPU Home's long position.The idea behind Zhangjiagang Elegant Home and AUPU Home Style pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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