Correlation Between Zhangjiagang Freetrade and Shan Dong

Can any of the company-specific risk be diversified away by investing in both Zhangjiagang Freetrade and Shan Dong at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zhangjiagang Freetrade and Shan Dong into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zhangjiagang Freetrade Science and Shan Dong Dong E, you can compare the effects of market volatilities on Zhangjiagang Freetrade and Shan Dong 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 Zhangjiagang Freetrade with a short position of Shan Dong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and Shan Dong.

Diversification Opportunities for Zhangjiagang Freetrade and Shan Dong

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Correlation Coefficient

Zhangjiagang Freetrade  Shan Dong

Pay attention - limited upside

The 3 months correlation between Zhangjiagang and Shan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science and Shan Dong Dong E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shan Dong Dong and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade Science are associated (or correlated) with Shan Dong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shan Dong Dong has no effect on the direction of Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and Shan Dong go up and down completely randomly.

Pair Corralation between Zhangjiagang Freetrade and Shan Dong

If you would invest  360.00  in Zhangjiagang Freetrade Science on October 5, 2024 and sell it today you would lose (7.00) from holding Zhangjiagang Freetrade Science or give up 1.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Zhangjiagang Freetrade Science  vs.  Shan Dong Dong E

Zhangjiagang Freetrade

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Zhangjiagang Freetrade Science has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Zhangjiagang Freetrade is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Shan Dong Dong

Risk-Adjusted Performance

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Insignificant

Over the last 90 days Shan Dong Dong E has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shan Dong is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Zhangjiagang Freetrade and Shan Dong

The main advantage of trading using opposite Zhangjiagang Freetrade and Shan Dong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade position performs unexpectedly, Shan Dong 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 Shan Dong will offset losses from the drop in Shan Dong's long position.

The idea behind Zhangjiagang Freetrade Science and Shan Dong Dong E pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.