Correlation Between Duzhe Publishing and Zhejiang Daily
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By analyzing existing cross correlation between Duzhe Publishing Media and Zhejiang Daily Media, you can compare the effects of market volatilities on Duzhe Publishing and Zhejiang Daily 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 Duzhe Publishing with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Zhejiang Daily.
Diversification Opportunities for Duzhe Publishing and Zhejiang Daily
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Duzhe and Zhejiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media and Duzhe Publishing 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 Duzhe Publishing Media are associated (or correlated) with Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Duzhe Publishing i.e., Duzhe Publishing and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Zhejiang Daily
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 1.85 times more return on investment than Zhejiang Daily. However, Duzhe Publishing is 1.85 times more volatile than Zhejiang Daily Media. It trades about 0.23 of its potential returns per unit of risk. Zhejiang Daily Media is currently generating about 0.07 per unit of risk. If you would invest 582.00 in Duzhe Publishing Media on September 20, 2024 and sell it today you would earn a total of 123.00 from holding Duzhe Publishing Media or generate 21.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Duzhe Publishing Media vs. Zhejiang Daily Media
Performance |
Timeline |
Duzhe Publishing Media |
Zhejiang Daily Media |
Duzhe Publishing and Zhejiang Daily Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Duzhe Publishing and Zhejiang Daily
The main advantage of trading using opposite Duzhe Publishing and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing position performs unexpectedly, Zhejiang Daily 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 Daily will offset losses from the drop in Zhejiang Daily's long position.Duzhe Publishing vs. ZYF Lopsking Aluminum | Duzhe Publishing vs. Bloomage Biotechnology Corp | Duzhe Publishing vs. Zhejiang Yayi Metal | Duzhe Publishing vs. Anhui Transport Consulting |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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