Correlation Between Zhejiang Daily and China Galaxy
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By analyzing existing cross correlation between Zhejiang Daily Media and China Galaxy Securities, you can compare the effects of market volatilities on Zhejiang Daily and China Galaxy 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 Daily with a short position of China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and China Galaxy.
Diversification Opportunities for Zhejiang Daily and China Galaxy
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities and Zhejiang Daily 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 Daily Media are associated (or correlated) with China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Zhejiang Daily i.e., Zhejiang Daily and China Galaxy go up and down completely randomly.
Pair Corralation between Zhejiang Daily and China Galaxy
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to under-perform the China Galaxy. In addition to that, Zhejiang Daily is 1.09 times more volatile than China Galaxy Securities. It trades about -0.04 of its total potential returns per unit of risk. China Galaxy Securities is currently generating about -0.03 per unit of volatility. If you would invest 1,422 in China Galaxy Securities on October 15, 2024 and sell it today you would lose (90.00) from holding China Galaxy Securities or give up 6.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Daily Media vs. China Galaxy Securities
Performance |
Timeline |
Zhejiang Daily Media |
China Galaxy Securities |
Zhejiang Daily and China Galaxy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Daily and China Galaxy
The main advantage of trading using opposite Zhejiang Daily and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.Zhejiang Daily vs. Jiangsu Hoperun Software | Zhejiang Daily vs. Hangzhou Pinming Software | Zhejiang Daily vs. Beijing Baolande Software | Zhejiang Daily vs. Telling Telecommunication Holding |
China Galaxy vs. Ping An Insurance | China Galaxy vs. Epoxy Base Electronic | China Galaxy vs. Ningbo Kangqiang Electronics | China Galaxy vs. Jiangsu Financial Leasing |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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