Correlation Between Zhejiang Xiantong and Changchun Faway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Xiantong RubberPlastic and Changchun Faway Automobile, you can compare the effects of market volatilities on Zhejiang Xiantong and Changchun Faway 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 Xiantong with a short position of Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Xiantong and Changchun Faway.
Diversification Opportunities for Zhejiang Xiantong and Changchun Faway
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Changchun is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Xiantong RubberPlasti and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto and Zhejiang Xiantong 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 Xiantong RubberPlastic are associated (or correlated) with Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Zhejiang Xiantong i.e., Zhejiang Xiantong and Changchun Faway go up and down completely randomly.
Pair Corralation between Zhejiang Xiantong and Changchun Faway
Assuming the 90 days trading horizon Zhejiang Xiantong RubberPlastic is expected to generate 1.71 times more return on investment than Changchun Faway. However, Zhejiang Xiantong is 1.71 times more volatile than Changchun Faway Automobile. It trades about 0.13 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about -0.23 per unit of risk. 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 | 95.45% |
Values | Daily Returns |
Zhejiang Xiantong RubberPlasti vs. Changchun Faway Automobile
Performance |
Timeline |
Zhejiang Xiantong |
Changchun Faway Auto |
Zhejiang Xiantong and Changchun Faway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Xiantong and Changchun Faway
The main advantage of trading using opposite Zhejiang Xiantong and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Xiantong position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |