Correlation Between Zhejiang Orient and CNPC Capital
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By analyzing existing cross correlation between Zhejiang Orient Gene and CNPC Capital Co, you can compare the effects of market volatilities on Zhejiang Orient and CNPC Capital 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 Orient with a short position of CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and CNPC Capital.
Diversification Opportunities for Zhejiang Orient and CNPC Capital
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and CNPC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital and Zhejiang Orient 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 Orient Gene are associated (or correlated) with CNPC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNPC Capital has no effect on the direction of Zhejiang Orient i.e., Zhejiang Orient and CNPC Capital go up and down completely randomly.
Pair Corralation between Zhejiang Orient and CNPC Capital
Assuming the 90 days trading horizon Zhejiang Orient Gene is expected to under-perform the CNPC Capital. In addition to that, Zhejiang Orient is 1.33 times more volatile than CNPC Capital Co. It trades about -0.08 of its total potential returns per unit of risk. CNPC Capital Co is currently generating about -0.06 per unit of volatility. If you would invest 728.00 in CNPC Capital Co on September 27, 2024 and sell it today you would lose (14.00) from holding CNPC Capital Co or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. CNPC Capital Co
Performance |
| Timeline |
| Zhejiang Orient Gene |
| CNPC Capital |
Zhejiang Orient and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and CNPC Capital
The main advantage of trading using opposite Zhejiang Orient and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient position performs unexpectedly, CNPC Capital 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 CNPC Capital will offset losses from the drop in CNPC Capital's long position.| Zhejiang Orient vs. New China Life | Zhejiang Orient vs. Ming Yang Smart | Zhejiang Orient vs. 159681 | Zhejiang Orient vs. 159005 |
| CNPC Capital vs. Ming Yang Smart | CNPC Capital vs. 159681 | CNPC Capital vs. 159005 | CNPC Capital vs. Loctek Ergonomic 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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