Correlation Between Touchstone International and Zhejiang Kingland
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By analyzing existing cross correlation between Touchstone International Medical and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Touchstone International and Zhejiang Kingland 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 Touchstone International with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Zhejiang Kingland.
Diversification Opportunities for Touchstone International and Zhejiang Kingland
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Touchstone and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland and Touchstone International 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 Touchstone International Medical are associated (or correlated) with Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Touchstone International i.e., Touchstone International and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Touchstone International and Zhejiang Kingland
Assuming the 90 days trading horizon Touchstone International Medical is expected to generate 1.42 times more return on investment than Zhejiang Kingland. However, Touchstone International is 1.42 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.16 per unit of risk. If you would invest 1,892 in Touchstone International Medical on October 30, 2024 and sell it today you would lose (3.00) from holding Touchstone International Medical or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Touchstone International |
| Zhejiang Kingland |
Touchstone International and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Zhejiang Kingland
The main advantage of trading using opposite Touchstone International and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Zhejiang Kingland 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 Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Touchstone International vs. DO Home Collection | Touchstone International vs. UE Furniture Co | Touchstone International vs. Jinhe Biotechnology Co | Touchstone International vs. AUPU Home Style |
| Zhejiang Kingland vs. SSAW Hotels Resorts | Zhejiang Kingland vs. PKU HealthCare Corp | Zhejiang Kingland vs. Meinian Onehealth Healthcare | Zhejiang Kingland vs. Lootom Telcovideo Network |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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