Correlation Between Zhibao Technology and China Tontine
Can any of the company-specific risk be diversified away by investing in both Zhibao Technology and China Tontine 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 Zhibao Technology and China Tontine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhibao Technology Class and China Tontine Wines, you can compare the effects of market volatilities on Zhibao Technology and China Tontine 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 Zhibao Technology with a short position of China Tontine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhibao Technology and China Tontine.
Diversification Opportunities for Zhibao Technology and China Tontine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zhibao and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zhibao Technology Class and China Tontine Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Tontine Wines and Zhibao Technology 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 Zhibao Technology Class are associated (or correlated) with China Tontine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Tontine Wines has no effect on the direction of Zhibao Technology i.e., Zhibao Technology and China Tontine go up and down completely randomly.
Pair Corralation between Zhibao Technology and China Tontine
Given the investment horizon of 90 days Zhibao Technology is expected to generate 1305.78 times less return on investment than China Tontine. But when comparing it to its historical volatility, Zhibao Technology Class is 17.51 times less risky than China Tontine. It trades about 0.0 of its potential returns per unit of risk. China Tontine Wines is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.20 in China Tontine Wines on September 3, 2024 and sell it today you would earn a total of 6.90 from holding China Tontine Wines or generate 3450.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 34.55% |
| Values | Daily Returns |
Zhibao Technology Class vs. China Tontine Wines
Performance |
| Timeline |
| Zhibao Technology Class |
| China Tontine Wines |
Zhibao Technology and China Tontine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhibao Technology and China Tontine
The main advantage of trading using opposite Zhibao Technology and China Tontine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhibao Technology position performs unexpectedly, China Tontine 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 China Tontine will offset losses from the drop in China Tontine's long position.| Zhibao Technology vs. Zhihu Inc ADR | Zhibao Technology vs. NetSol Technologies | Zhibao Technology vs. Getty Images Holdings | Zhibao Technology vs. BCE Inc |
| China Tontine vs. Diageo plc | China Tontine vs. Diageo PLC ADR | China Tontine vs. Pernod Ricard SA | China Tontine vs. Pernod Ricard SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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