Correlation Between Shanghai Shuixing and Zhejiang Daily
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By analyzing existing cross correlation between Shanghai Shuixing Home and Zhejiang Daily Media, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shanghai Shuixing with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Zhejiang Daily.
Diversification Opportunities for Shanghai Shuixing and Zhejiang Daily
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Zhejiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home 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 Shanghai Shuixing 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 Shanghai Shuixing Home 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 Shanghai Shuixing i.e., Shanghai Shuixing and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Zhejiang Daily
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to under-perform the Zhejiang Daily. In addition to that, Shanghai Shuixing is 1.1 times more volatile than Zhejiang Daily Media. It trades about -0.03 of its total potential returns per unit of risk. Zhejiang Daily Media is currently generating about 0.07 per unit of volatility. If you would invest 934.00 in Zhejiang Daily Media on September 3, 2024 and sell it today you would earn a total of 180.00 from holding Zhejiang Daily Media or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Zhejiang Daily Media
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Zhejiang Daily Media |
Shanghai Shuixing and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Zhejiang Daily
The main advantage of trading using opposite Shanghai Shuixing and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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.| Shanghai Shuixing vs. Cofoe Medical Technology | Shanghai Shuixing vs. Qingdao Baheal Medical | Shanghai Shuixing vs. Jinling Hotel Corp | Shanghai Shuixing vs. Allmed Medical Products |
| Zhejiang Daily vs. Metro Investment Development | Zhejiang Daily vs. Nuode Investment Co | Zhejiang Daily vs. Nexchip Semiconductor Corp | Zhejiang Daily vs. Hunan Investment Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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