Correlation Between Dongjiang Environmental and Zhejiang Kingland
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By analyzing existing cross correlation between Dongjiang Environmental Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Dongjiang Environmental and Zhejiang Kingland 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 Dongjiang Environmental with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjiang Environmental and Zhejiang Kingland.
Diversification Opportunities for Dongjiang Environmental and Zhejiang Kingland
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongjiang and Zhejiang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dongjiang Environmental Co and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland and Dongjiang Environmental 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 Dongjiang Environmental Co are associated (or correlated) with Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Dongjiang Environmental i.e., Dongjiang Environmental and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Dongjiang Environmental and Zhejiang Kingland
Assuming the 90 days trading horizon Dongjiang Environmental Co is expected to generate 1.18 times more return on investment than Zhejiang Kingland. However, Dongjiang Environmental is 1.18 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.12 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.08 per unit of risk. If you would invest 375.00 in Dongjiang Environmental Co on September 24, 2024 and sell it today you would earn a total of 78.00 from holding Dongjiang Environmental Co or generate 20.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
Dongjiang Environmental Co vs. Zhejiang Kingland Pipeline
Performance |
Timeline |
Dongjiang Environmental |
Zhejiang Kingland |
Dongjiang Environmental and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dongjiang Environmental and Zhejiang Kingland
The main advantage of trading using opposite Dongjiang Environmental and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjiang Environmental position performs unexpectedly, Zhejiang Kingland 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 Kingland will offset losses from the drop in Zhejiang Kingland's long position.Dongjiang Environmental vs. Ming Yang Smart | Dongjiang Environmental vs. 159681 | Dongjiang Environmental vs. 159005 | Dongjiang Environmental vs. Loctek Ergonomic Technology |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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