Correlation Between Zhejiang Orient and Xinjiang Tianshun
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By analyzing existing cross correlation between Zhejiang Orient Gene and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Zhejiang Orient and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Xinjiang Tianshun.
Diversification Opportunities for Zhejiang Orient and Xinjiang Tianshun
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Xinjiang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Zhejiang Orient i.e., Zhejiang Orient and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Xinjiang Tianshun
Assuming the 90 days trading horizon Zhejiang Orient is expected to generate 2.9 times less return on investment than Xinjiang Tianshun. In addition to that, Zhejiang Orient is 1.24 times more volatile than Xinjiang Tianshun Supply. It trades about 0.05 of its total potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.2 per unit of volatility. If you would invest 911.00 in Xinjiang Tianshun Supply on September 12, 2024 and sell it today you would earn a total of 381.00 from holding Xinjiang Tianshun Supply or generate 41.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Zhejiang Orient Gene |
| Xinjiang Tianshun Supply |
Zhejiang Orient and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and Xinjiang Tianshun
The main advantage of trading using opposite Zhejiang Orient and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Zhejiang Orient vs. Northking Information Technology | Zhejiang Orient vs. ButOne Information Corp | Zhejiang Orient vs. AVCON Information Tech | Zhejiang Orient vs. Emdoor Information Co |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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