Correlation Between Zhejiang Huayou and Zhejiang Juhua
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By analyzing existing cross correlation between Zhejiang Huayou Cobalt and Zhejiang Juhua Co, you can compare the effects of market volatilities on Zhejiang Huayou and Zhejiang Juhua 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 Zhejiang Huayou with a short position of Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huayou and Zhejiang Juhua.
Diversification Opportunities for Zhejiang Huayou and Zhejiang Juhua
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhejiang and Zhejiang is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huayou Cobalt and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua and Zhejiang Huayou 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 Zhejiang Huayou Cobalt are associated (or correlated) with Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Zhejiang Huayou i.e., Zhejiang Huayou and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Zhejiang Huayou and Zhejiang Juhua
Assuming the 90 days trading horizon Zhejiang Huayou Cobalt is expected to under-perform the Zhejiang Juhua. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Huayou Cobalt is 1.44 times less risky than Zhejiang Juhua. The stock trades about -0.15 of its potential returns per unit of risk. The Zhejiang Juhua Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,237 in Zhejiang Juhua Co on October 30, 2024 and sell it today you would earn a total of 330.00 from holding Zhejiang Juhua Co or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huayou Cobalt vs. Zhejiang Juhua Co
Performance |
| Timeline |
| Zhejiang Huayou Cobalt |
| Zhejiang Juhua |
Zhejiang Huayou and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huayou and Zhejiang Juhua
The main advantage of trading using opposite Zhejiang Huayou and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huayou position performs unexpectedly, Zhejiang Juhua 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 Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
| Zhejiang Juhua vs. Dawning Information Industry | Zhejiang Juhua vs. Tongding Interconnection Information | Zhejiang Juhua vs. Ningbo Kangqiang Electronics | Zhejiang Juhua vs. TongFu Microelectronics Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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