Correlation Between MARKET VECTR and ZhongAn Online
Can any of the company-specific risk be diversified away by investing in both MARKET VECTR and ZhongAn Online at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MARKET VECTR and ZhongAn Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MARKET VECTR RETAIL and ZhongAn Online P, you can compare the effects of market volatilities on MARKET VECTR and ZhongAn Online 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 MARKET VECTR with a short position of ZhongAn Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKET VECTR and ZhongAn Online.
Diversification Opportunities for MARKET VECTR and ZhongAn Online
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MARKET and ZhongAn is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MARKET VECTR RETAIL and ZhongAn Online P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZhongAn Online P and MARKET VECTR 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 MARKET VECTR RETAIL are associated (or correlated) with ZhongAn Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZhongAn Online P has no effect on the direction of MARKET VECTR i.e., MARKET VECTR and ZhongAn Online go up and down completely randomly.
Pair Corralation between MARKET VECTR and ZhongAn Online
Assuming the 90 days trading horizon MARKET VECTR RETAIL is expected to generate 0.25 times more return on investment than ZhongAn Online. However, MARKET VECTR RETAIL is 4.03 times less risky than ZhongAn Online. It trades about 0.13 of its potential returns per unit of risk. ZhongAn Online P is currently generating about -0.07 per unit of risk. If you would invest 21,530 in MARKET VECTR RETAIL on October 23, 2024 and sell it today you would earn a total of 695.00 from holding MARKET VECTR RETAIL or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MARKET VECTR RETAIL vs. ZhongAn Online P
Performance |
| Timeline |
| MARKET VECTR RETAIL |
| ZhongAn Online P |
MARKET VECTR and ZhongAn Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARKET VECTR and ZhongAn Online
The main advantage of trading using opposite MARKET VECTR and ZhongAn Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKET VECTR position performs unexpectedly, ZhongAn Online 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 ZhongAn Online will offset losses from the drop in ZhongAn Online's long position.| MARKET VECTR vs. Sixt Leasing SE | MARKET VECTR vs. HANOVER INSURANCE | MARKET VECTR vs. Reinsurance Group of | MARKET VECTR vs. Air Lease |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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