Correlation Between Zhongtong Guomai and Zhejiang Publishing
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Zhejiang Publishing Media, you can compare the effects of market volatilities on Zhongtong Guomai and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Zhejiang Publishing.
Diversification Opportunities for Zhongtong Guomai and Zhejiang Publishing
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhongtong and Zhejiang is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Zhejiang Publishing
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Zhejiang Publishing. In addition to that, Zhongtong Guomai is 1.61 times more volatile than Zhejiang Publishing Media. It trades about -0.24 of its total potential returns per unit of risk. Zhejiang Publishing Media is currently generating about 0.02 per unit of volatility. If you would invest 835.00 in Zhejiang Publishing Media on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Zhejiang Publishing Media or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Zhejiang Publishing Media |
Zhongtong Guomai and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Zhejiang Publishing
The main advantage of trading using opposite Zhongtong Guomai and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Zhejiang Publishing 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 Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Zhongtong Guomai vs. Gansu Jiu Steel | Zhongtong Guomai vs. Shandong Mining Machinery | Zhongtong Guomai vs. Aba Chemicals Corp | Zhongtong Guomai vs. BlueFocus Communication Group |
| Zhejiang Publishing vs. Kweichow Moutai Co | Zhejiang Publishing vs. Shenzhen Mindray Bio Medical | Zhejiang Publishing vs. G bits Network Technology | Zhejiang Publishing vs. Beijing Roborock Technology |
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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