Correlation Between Zhejiang Qianjiang and INKON Life
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and INKON Life Technology, you can compare the effects of market volatilities on Zhejiang Qianjiang and INKON Life 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 Zhejiang Qianjiang with a short position of INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and INKON Life.
Diversification Opportunities for Zhejiang Qianjiang and INKON Life
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and INKON is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology and Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle are associated (or correlated) with INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and INKON Life go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and INKON Life
Assuming the 90 days trading horizon Zhejiang Qianjiang is expected to generate 1.78 times less return on investment than INKON Life. But when comparing it to its historical volatility, Zhejiang Qianjiang Motorcycle is 1.31 times less risky than INKON Life. It trades about 0.06 of its potential returns per unit of risk. INKON Life Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 794.00 in INKON Life Technology on September 26, 2024 and sell it today you would earn a total of 131.00 from holding INKON Life Technology or generate 16.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. INKON Life Technology
Performance |
Timeline |
Zhejiang Qianjiang |
INKON Life Technology |
Zhejiang Qianjiang and INKON Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Qianjiang and INKON Life
The main advantage of trading using opposite Zhejiang Qianjiang and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.Zhejiang Qianjiang vs. Guilin Seamild Foods | Zhejiang Qianjiang vs. Zhongyin Babi Food | Zhejiang Qianjiang vs. Wasu Media Holding | Zhejiang Qianjiang vs. Eastroc Beverage Group |
INKON Life vs. Cultural Investment Holdings | INKON Life vs. Gome Telecom Equipment | INKON Life vs. Bus Online Co | INKON Life vs. Holitech Technology Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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