Correlation Between Dongxing Sec and Zhejiang Xiantong
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By analyzing existing cross correlation between Dongxing Sec Co and Zhejiang Xiantong RubberPlastic, you can compare the effects of market volatilities on Dongxing Sec and Zhejiang Xiantong 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 Dongxing Sec with a short position of Zhejiang Xiantong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Zhejiang Xiantong.
Diversification Opportunities for Dongxing Sec and Zhejiang Xiantong
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongxing and Zhejiang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Zhejiang Xiantong RubberPlasti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Xiantong and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Zhejiang Xiantong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Xiantong has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Zhejiang Xiantong go up and down completely randomly.
Pair Corralation between Dongxing Sec and Zhejiang Xiantong
Assuming the 90 days trading horizon Dongxing Sec is expected to generate 1.9 times less return on investment than Zhejiang Xiantong. But when comparing it to its historical volatility, Dongxing Sec Co is 1.74 times less risky than Zhejiang Xiantong. It trades about 0.12 of its potential returns per unit of risk. Zhejiang Xiantong RubberPlastic is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,267 in Zhejiang Xiantong RubberPlastic on September 25, 2024 and sell it today you would earn a total of 99.00 from holding Zhejiang Xiantong RubberPlastic or generate 7.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dongxing Sec Co vs. Zhejiang Xiantong RubberPlasti
Performance |
Timeline |
Dongxing Sec |
Zhejiang Xiantong |
Dongxing Sec and Zhejiang Xiantong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dongxing Sec and Zhejiang Xiantong
The main advantage of trading using opposite Dongxing Sec and Zhejiang Xiantong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Zhejiang Xiantong 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 Xiantong will offset losses from the drop in Zhejiang Xiantong's long position.Dongxing Sec vs. Qumei Furniture Group | Dongxing Sec vs. China Nonferrous Metal | Dongxing Sec vs. Sichuan Yahua Industrial | Dongxing Sec vs. Nanxing Furniture Machinery |
Zhejiang Xiantong vs. China Life Insurance | Zhejiang Xiantong vs. Cinda Securities Co | Zhejiang Xiantong vs. Piotech Inc A | Zhejiang Xiantong vs. Dongxing Sec Co |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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