Correlation Between ACM Research and Zhejiang Huatong
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By analyzing existing cross correlation between ACM Research Shanghai and Zhejiang Huatong Meat, you can compare the effects of market volatilities on ACM Research and Zhejiang Huatong 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 ACM Research with a short position of Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACM Research and Zhejiang Huatong.
Diversification Opportunities for ACM Research and Zhejiang Huatong
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACM and Zhejiang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ACM Research Shanghai and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat and ACM Research 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 ACM Research Shanghai are associated (or correlated) with Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of ACM Research i.e., ACM Research and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between ACM Research and Zhejiang Huatong
Assuming the 90 days trading horizon ACM Research Shanghai is expected to generate 1.17 times more return on investment than Zhejiang Huatong. However, ACM Research is 1.17 times more volatile than Zhejiang Huatong Meat. It trades about 0.11 of its potential returns per unit of risk. Zhejiang Huatong Meat is currently generating about 0.11 per unit of risk. If you would invest 8,175 in ACM Research Shanghai on September 25, 2024 and sell it today you would earn a total of 2,225 from holding ACM Research Shanghai or generate 27.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ACM Research Shanghai vs. Zhejiang Huatong Meat
Performance |
Timeline |
ACM Research Shanghai |
Zhejiang Huatong Meat |
ACM Research and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACM Research and Zhejiang Huatong
The main advantage of trading using opposite ACM Research and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACM Research position performs unexpectedly, Zhejiang Huatong 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 Huatong will offset losses from the drop in Zhejiang Huatong's long position.ACM Research vs. Ming Yang Smart | ACM Research vs. 159681 | ACM Research vs. 159005 | ACM Research vs. Loctek Ergonomic Technology |
Zhejiang Huatong vs. Chongqing Shunbo Aluminum | Zhejiang Huatong vs. China Aluminum International | Zhejiang Huatong vs. Sportsoul Co Ltd | Zhejiang Huatong vs. Sino Platinum Metals 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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