Correlation Between Duzhe Publishing and Zhongjing Food
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By analyzing existing cross correlation between Duzhe Publishing Media and Zhongjing Food Co, you can compare the effects of market volatilities on Duzhe Publishing and Zhongjing Food 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 Duzhe Publishing with a short position of Zhongjing Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Zhongjing Food.
Diversification Opportunities for Duzhe Publishing and Zhongjing Food
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duzhe and Zhongjing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Zhongjing Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongjing Food and Duzhe Publishing 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 Duzhe Publishing Media are associated (or correlated) with Zhongjing Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongjing Food has no effect on the direction of Duzhe Publishing i.e., Duzhe Publishing and Zhongjing Food go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Zhongjing Food
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 1.22 times more return on investment than Zhongjing Food. However, Duzhe Publishing is 1.22 times more volatile than Zhongjing Food Co. It trades about 0.04 of its potential returns per unit of risk. Zhongjing Food Co is currently generating about 0.01 per unit of risk. If you would invest 625.00 in Duzhe Publishing Media on December 8, 2024 and sell it today you would earn a total of 9.00 from holding Duzhe Publishing Media or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duzhe Publishing Media vs. Zhongjing Food Co
Performance |
| Timeline |
| Duzhe Publishing Media |
| Zhongjing Food |
Duzhe Publishing and Zhongjing Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Zhongjing Food
The main advantage of trading using opposite Duzhe Publishing and Zhongjing Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing position performs unexpectedly, Zhongjing Food 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 Zhongjing Food will offset losses from the drop in Zhongjing Food's long position.| Duzhe Publishing vs. Sinomach Automobile Co | ||
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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