Correlation Between Zhengping RoadBridge and Jinhui Liquor
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By analyzing existing cross correlation between Zhengping RoadBridge Constr and Jinhui Liquor Co, you can compare the effects of market volatilities on Zhengping RoadBridge and Jinhui Liquor 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 Zhengping RoadBridge with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengping RoadBridge and Jinhui Liquor.
Diversification Opportunities for Zhengping RoadBridge and Jinhui Liquor
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhengping and Jinhui is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Zhengping RoadBridge Constr and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Zhengping RoadBridge 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 Zhengping RoadBridge Constr are associated (or correlated) with Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Zhengping RoadBridge i.e., Zhengping RoadBridge and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Zhengping RoadBridge and Jinhui Liquor
Assuming the 90 days trading horizon Zhengping RoadBridge Constr is expected to generate 2.76 times more return on investment than Jinhui Liquor. However, Zhengping RoadBridge is 2.76 times more volatile than Jinhui Liquor Co. It trades about 0.09 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.1 per unit of risk. If you would invest 351.00 in Zhengping RoadBridge Constr on September 25, 2024 and sell it today you would earn a total of 25.00 from holding Zhengping RoadBridge Constr or generate 7.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhengping RoadBridge Constr vs. Jinhui Liquor Co
Performance |
Timeline |
Zhengping RoadBridge |
Jinhui Liquor |
Zhengping RoadBridge and Jinhui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhengping RoadBridge and Jinhui Liquor
The main advantage of trading using opposite Zhengping RoadBridge and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengping RoadBridge position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.Zhengping RoadBridge vs. Ming Yang Smart | Zhengping RoadBridge vs. 159681 | Zhengping RoadBridge vs. 159005 | Zhengping RoadBridge vs. Loctek Ergonomic Technology |
Jinhui Liquor vs. Andon Health Co | Jinhui Liquor vs. PKU HealthCare Corp | Jinhui Liquor vs. Talkweb Information System | Jinhui Liquor vs. Invengo Information Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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