Correlation Between ZJBC Information and Shanghai Jinfeng
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By analyzing existing cross correlation between ZJBC Information Technology and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on ZJBC Information and Shanghai Jinfeng 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 ZJBC Information with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Shanghai Jinfeng.
Diversification Opportunities for ZJBC Information and Shanghai Jinfeng
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZJBC and Shanghai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and ZJBC Information 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 ZJBC Information Technology are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of ZJBC Information i.e., ZJBC Information and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between ZJBC Information and Shanghai Jinfeng
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 1.2 times more return on investment than Shanghai Jinfeng. However, ZJBC Information is 1.2 times more volatile than Shanghai Jinfeng Wine. It trades about 0.04 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.0 per unit of risk. If you would invest 194.00 in ZJBC Information Technology on September 26, 2024 and sell it today you would earn a total of 70.00 from holding ZJBC Information Technology or generate 36.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
ZJBC Information Technology vs. Shanghai Jinfeng Wine
Performance |
Timeline |
ZJBC Information Tec |
Shanghai Jinfeng Wine |
ZJBC Information and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ZJBC Information and Shanghai Jinfeng
The main advantage of trading using opposite ZJBC Information and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.ZJBC Information vs. GigaDevice SemiconductorBeiji | ZJBC Information vs. Healthcare Co | ZJBC Information vs. Everdisplay Optronics Shanghai | ZJBC Information vs. Semiconductor Manufacturing Electronics |
Shanghai Jinfeng vs. ZJBC Information Technology | Shanghai Jinfeng vs. Harbin Air Conditioning | Shanghai Jinfeng vs. Longmaster Information Tech | Shanghai Jinfeng vs. Guangzhou Ruoyuchen Information |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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