Correlation Between Zhongtong Guomai and Hithink RoyalFlush
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Hithink RoyalFlush Info, you can compare the effects of market volatilities on Zhongtong Guomai and Hithink RoyalFlush 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 Zhongtong Guomai with a short position of Hithink RoyalFlush. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Hithink RoyalFlush.
Diversification Opportunities for Zhongtong Guomai and Hithink RoyalFlush
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Hithink is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Hithink RoyalFlush Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hithink RoyalFlush Info and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Hithink RoyalFlush. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hithink RoyalFlush Info has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Hithink RoyalFlush go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Hithink RoyalFlush
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Hithink RoyalFlush. In addition to that, Zhongtong Guomai is 1.63 times more volatile than Hithink RoyalFlush Info. It trades about -0.24 of its total potential returns per unit of risk. Hithink RoyalFlush Info is currently generating about -0.04 per unit of volatility. If you would invest 30,583 in Hithink RoyalFlush Info on October 21, 2024 and sell it today you would lose (1,523) from holding Hithink RoyalFlush Info or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Hithink RoyalFlush Info
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Hithink RoyalFlush Info |
Zhongtong Guomai and Hithink RoyalFlush Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Hithink RoyalFlush
The main advantage of trading using opposite Zhongtong Guomai and Hithink RoyalFlush positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Hithink RoyalFlush 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 Hithink RoyalFlush will offset losses from the drop in Hithink RoyalFlush's long position.| Zhongtong Guomai vs. Andon Health Co | Zhongtong Guomai vs. Heren Health Co | Zhongtong Guomai vs. Shanghai CEO Environmental | Zhongtong Guomai vs. Anhui Huaren Health |
| Hithink RoyalFlush vs. New China Life | Hithink RoyalFlush vs. Ming Yang Smart | Hithink RoyalFlush vs. 159681 | Hithink RoyalFlush vs. 159005 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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