Correlation Between Zhongtong Guomai and Hubei Jumpcan
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Hubei Jumpcan Pharmaceutical, you can compare the effects of market volatilities on Zhongtong Guomai and Hubei Jumpcan 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 Hubei Jumpcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Hubei Jumpcan.
Diversification Opportunities for Zhongtong Guomai and Hubei Jumpcan
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongtong and Hubei is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Hubei Jumpcan Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Jumpcan Pharma 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 Hubei Jumpcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Jumpcan Pharma has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Hubei Jumpcan go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Hubei Jumpcan
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Hubei Jumpcan. In addition to that, Zhongtong Guomai is 4.12 times more volatile than Hubei Jumpcan Pharmaceutical. It trades about -0.08 of its total potential returns per unit of risk. Hubei Jumpcan Pharmaceutical is currently generating about -0.07 per unit of volatility. If you would invest 2,972 in Hubei Jumpcan Pharmaceutical on October 9, 2024 and sell it today you would lose (81.00) from holding Hubei Jumpcan Pharmaceutical or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Hubei Jumpcan Pharmaceutical
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Hubei Jumpcan Pharma |
Zhongtong Guomai and Hubei Jumpcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Hubei Jumpcan
The main advantage of trading using opposite Zhongtong Guomai and Hubei Jumpcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Hubei Jumpcan 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 Hubei Jumpcan will offset losses from the drop in Hubei Jumpcan's long position.| Zhongtong Guomai vs. Linewell Software Co | Zhongtong Guomai vs. Digiwin Software Co | Zhongtong Guomai vs. Sichuan Fulin Transportation | Zhongtong Guomai vs. Shandong Hi Speed RoadBridge |
| Hubei Jumpcan vs. Eastern Communications Co | Hubei Jumpcan vs. Fiberhome Telecommunication Technologies | Hubei Jumpcan vs. Guangzhou Haige Communications | Hubei Jumpcan vs. Quectel Wireless Solutions |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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