Correlation Between INKON Life and Zhejiang Qianjiang
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By analyzing existing cross correlation between INKON Life Technology and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on INKON Life and Zhejiang Qianjiang 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 INKON Life with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Zhejiang Qianjiang.
Diversification Opportunities for INKON Life and Zhejiang Qianjiang
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INKON and Zhejiang is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life Technology and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and INKON Life 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 INKON Life Technology are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of INKON Life i.e., INKON Life and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between INKON Life and Zhejiang Qianjiang
Assuming the 90 days trading horizon INKON Life Technology is expected to generate 1.31 times more return on investment than Zhejiang Qianjiang. However, INKON Life is 1.31 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.08 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.06 per unit of risk. 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 |
INKON Life Technology vs. Zhejiang Qianjiang Motorcycle
Performance |
Timeline |
INKON Life Technology |
Zhejiang Qianjiang |
INKON Life and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INKON Life and Zhejiang Qianjiang
The main advantage of trading using opposite INKON Life and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.INKON Life vs. Cultural Investment Holdings | INKON Life vs. Gome Telecom Equipment | INKON Life vs. Bus Online Co | INKON Life vs. Holitech Technology Co |
Zhejiang Qianjiang vs. Guilin Seamild Foods | Zhejiang Qianjiang vs. Zhongyin Babi Food | Zhejiang Qianjiang vs. Wasu Media Holding | Zhejiang Qianjiang vs. Eastroc Beverage Group |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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