Correlation Between Zhejiang HISUN and Westone Information
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By analyzing existing cross correlation between Zhejiang HISUN Biomaterials and Westone Information Industry, you can compare the effects of market volatilities on Zhejiang HISUN and Westone Information 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 HISUN with a short position of Westone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang HISUN and Westone Information.
Diversification Opportunities for Zhejiang HISUN and Westone Information
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Westone is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang HISUN Biomaterials and Westone Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westone Information and Zhejiang HISUN 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 HISUN Biomaterials are associated (or correlated) with Westone Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westone Information has no effect on the direction of Zhejiang HISUN i.e., Zhejiang HISUN and Westone Information go up and down completely randomly.
Pair Corralation between Zhejiang HISUN and Westone Information
Assuming the 90 days trading horizon Zhejiang HISUN Biomaterials is expected to generate 0.93 times more return on investment than Westone Information. However, Zhejiang HISUN Biomaterials is 1.08 times less risky than Westone Information. It trades about -0.04 of its potential returns per unit of risk. Westone Information Industry is currently generating about -0.05 per unit of risk. If you would invest 1,851 in Zhejiang HISUN Biomaterials on October 16, 2024 and sell it today you would lose (917.00) from holding Zhejiang HISUN Biomaterials or give up 49.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang HISUN Biomaterials vs. Westone Information Industry
Performance |
| Timeline |
| Zhejiang HISUN Bioma |
| Westone Information |
Zhejiang HISUN and Westone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang HISUN and Westone Information
The main advantage of trading using opposite Zhejiang HISUN and Westone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang HISUN position performs unexpectedly, Westone Information 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 Westone Information will offset losses from the drop in Westone Information's long position.| Zhejiang HISUN vs. Zijin Mining Group | Zhejiang HISUN vs. Wanhua Chemical Group | Zhejiang HISUN vs. Baoshan Iron Steel | Zhejiang HISUN vs. Shandong Gold Mining |
| Westone Information vs. Ningxia Building Materials | Westone Information vs. Shuhua Sports Co | Westone Information vs. Zhejiang HISUN Biomaterials | Westone Information vs. Shanghai Yaoji Playing |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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