Correlation Between 5I5j Holding and Zhejiang Tailin
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By analyzing existing cross correlation between 5I5j Holding Group and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on 5I5j Holding and Zhejiang Tailin 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 5I5j Holding with a short position of Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and Zhejiang Tailin.
Diversification Opportunities for 5I5j Holding and Zhejiang Tailin
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 5I5j and Zhejiang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding Group and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe and 5I5j Holding 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 5I5j Holding Group are associated (or correlated) with Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of 5I5j Holding i.e., 5I5j Holding and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between 5I5j Holding and Zhejiang Tailin
Assuming the 90 days trading horizon 5I5j Holding Group is expected to generate 1.64 times more return on investment than Zhejiang Tailin. However, 5I5j Holding is 1.64 times more volatile than Zhejiang Tailin Bioengineering. It trades about -0.02 of its potential returns per unit of risk. Zhejiang Tailin Bioengineering is currently generating about -0.36 per unit of risk. If you would invest 333.00 in 5I5j Holding Group on September 25, 2024 and sell it today you would lose (8.00) from holding 5I5j Holding Group or give up 2.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
5I5j Holding Group vs. Zhejiang Tailin Bioengineering
Performance |
Timeline |
5I5j Holding Group |
Zhejiang Tailin Bioe |
5I5j Holding and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 5I5j Holding and Zhejiang Tailin
The main advantage of trading using opposite 5I5j Holding and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding position performs unexpectedly, Zhejiang Tailin 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 Tailin will offset losses from the drop in Zhejiang Tailin's long position.5I5j Holding vs. Industrial and Commercial | 5I5j Holding vs. Agricultural Bank of | 5I5j Holding vs. China Construction Bank | 5I5j Holding vs. Bank of China |
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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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