Correlation Between Zhejiang Orient and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Zhejiang Orient Gene and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Zhejiang Orient and Beijing HuaYuanYiTong 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 Orient with a short position of Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Beijing HuaYuanYiTong.
Diversification Opportunities for Zhejiang Orient and Beijing HuaYuanYiTong
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Beijing is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong and Zhejiang Orient 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 Orient Gene are associated (or correlated) with Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Zhejiang Orient i.e., Zhejiang Orient and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Zhejiang Orient is expected to generate 3.39 times less return on investment than Beijing HuaYuanYiTong. In addition to that, Zhejiang Orient is 1.15 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about 0.05 of its total potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.21 per unit of volatility. If you would invest 797.00 in Beijing HuaYuanYiTong Thermal on September 12, 2024 and sell it today you would earn a total of 402.00 from holding Beijing HuaYuanYiTong Thermal or generate 50.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Orient Gene vs. Beijing HuaYuanYiTong Thermal
Performance |
Timeline |
Zhejiang Orient Gene |
Beijing HuaYuanYiTong |
Zhejiang Orient and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Orient and Beijing HuaYuanYiTong
The main advantage of trading using opposite Zhejiang Orient and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.Zhejiang Orient vs. Northking Information Technology | Zhejiang Orient vs. ButOne Information Corp | Zhejiang Orient vs. AVCON Information Tech | Zhejiang Orient vs. Emdoor Information Co |
Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong vs. Loctek Ergonomic 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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