Correlation Between Juewei Food and Zhejiang Kingland
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By analyzing existing cross correlation between Juewei Food Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Juewei Food and Zhejiang Kingland 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 Juewei Food with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Zhejiang Kingland.
Diversification Opportunities for Juewei Food and Zhejiang Kingland
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juewei and Zhejiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland and Juewei Food 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 Juewei Food Co are associated (or correlated) with Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Juewei Food i.e., Juewei Food and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Juewei Food and Zhejiang Kingland
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Zhejiang Kingland. In addition to that, Juewei Food is 1.29 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.05 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.01 per unit of volatility. If you would invest 640.00 in Zhejiang Kingland Pipeline on August 31, 2024 and sell it today you would lose (1.00) from holding Zhejiang Kingland Pipeline or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Juewei Food |
| Zhejiang Kingland |
Juewei Food and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Zhejiang Kingland
The main advantage of trading using opposite Juewei Food and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, Zhejiang Kingland 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 Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Juewei Food vs. Lutian Machinery Co | Juewei Food vs. PetroChina Co Ltd | Juewei Food vs. Bank of China | Juewei Food vs. Gansu Jiu Steel |
| Zhejiang Kingland vs. Do Fluoride Chemicals Co | Zhejiang Kingland vs. Der International Home | Zhejiang Kingland vs. Markor International Home | Zhejiang Kingland vs. Shanghai Shuixing Home |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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