Correlation Between ZJBC Information and Dongxing Sec
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By analyzing existing cross correlation between ZJBC Information Technology and Dongxing Sec Co, you can compare the effects of market volatilities on ZJBC Information and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Dongxing Sec.
Diversification Opportunities for ZJBC Information and Dongxing Sec
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZJBC and Dongxing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of ZJBC Information i.e., ZJBC Information and Dongxing Sec go up and down completely randomly.
Pair Corralation between ZJBC Information and Dongxing Sec
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 0.71 times more return on investment than Dongxing Sec. However, ZJBC Information Technology is 1.41 times less risky than Dongxing Sec. It trades about 0.32 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.16 per unit of risk. If you would invest 167.00 in ZJBC Information Technology on September 23, 2024 and sell it today you would earn a total of 118.00 from holding ZJBC Information Technology or generate 70.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ZJBC Information Technology vs. Dongxing Sec Co
Performance |
Timeline |
ZJBC Information Tec |
Dongxing Sec |
ZJBC Information and Dongxing Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ZJBC Information and Dongxing Sec
The main advantage of trading using opposite ZJBC Information and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.ZJBC Information vs. Industrial and Commercial | ZJBC Information vs. Agricultural Bank of | ZJBC Information vs. China Construction Bank | ZJBC Information vs. Bank of China |
Dongxing Sec vs. ZJBC Information Technology | Dongxing Sec vs. Lander Sports Development | Dongxing Sec vs. Sichuan Newsnet Media | Dongxing Sec vs. YLZ Information Tech |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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