Correlation Between ZJBC Information and Xinya Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between ZJBC Information Technology and Xinya Electronic Co, you can compare the effects of market volatilities on ZJBC Information and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Xinya Electronic.
Diversification Opportunities for ZJBC Information and Xinya Electronic
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZJBC and Xinya is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of ZJBC Information i.e., ZJBC Information and Xinya Electronic go up and down completely randomly.
Pair Corralation between ZJBC Information and Xinya Electronic
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 0.99 times more return on investment than Xinya Electronic. However, ZJBC Information Technology is 1.01 times less risky than Xinya Electronic. It trades about 0.32 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.16 per unit of risk. If you would invest 170.00 in ZJBC Information Technology on September 24, 2024 and sell it today you would earn a total of 115.00 from holding ZJBC Information Technology or generate 67.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.36% |
Values | Daily Returns |
ZJBC Information Technology vs. Xinya Electronic Co
Performance |
Timeline |
ZJBC Information Tec |
Xinya Electronic |
ZJBC Information and Xinya Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ZJBC Information and Xinya Electronic
The main advantage of trading using opposite ZJBC Information and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.ZJBC Information vs. Beijing Mainstreets Investment | ZJBC Information vs. Linewell Software Co | ZJBC Information vs. Zhejiang Construction Investment | ZJBC Information vs. China National Software |
Xinya Electronic vs. Kweichow Moutai Co | Xinya Electronic vs. Contemporary Amperex Technology | Xinya Electronic vs. G bits Network Technology | Xinya Electronic vs. BYD Co Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |