Correlation Between AUPU Home and Zhejiang Daily
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By analyzing existing cross correlation between AUPU Home Style and Zhejiang Daily Media, you can compare the effects of market volatilities on AUPU Home 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 AUPU Home with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Zhejiang Daily.
Diversification Opportunities for AUPU Home and Zhejiang Daily
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AUPU and Zhejiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style 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 AUPU Home 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 AUPU Home Style 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 AUPU Home i.e., AUPU Home and Zhejiang Daily go up and down completely randomly.
Pair Corralation between AUPU Home and Zhejiang Daily
Assuming the 90 days trading horizon AUPU Home is expected to generate 2.56 times less return on investment than Zhejiang Daily. But when comparing it to its historical volatility, AUPU Home Style is 1.3 times less risky than Zhejiang Daily. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Daily Media is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Zhejiang Daily Media
Performance |
| Timeline |
| AUPU Home Style |
| Zhejiang Daily Media |
AUPU Home and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Zhejiang Daily
The main advantage of trading using opposite AUPU Home and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home 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.| AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. China Mobile Limited | AUPU Home vs. Industrial and Commercial | AUPU Home vs. China Life Insurance |
| 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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