Correlation Between Piotech and Zhejiang Xiantong
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By analyzing existing cross correlation between Piotech Inc A and Zhejiang Xiantong RubberPlastic, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of Zhejiang Xiantong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Zhejiang Xiantong.
Diversification Opportunities for Piotech and Zhejiang Xiantong
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Piotech and Zhejiang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Zhejiang Xiantong RubberPlasti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Xiantong and Piotech 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 Piotech Inc A 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 Piotech i.e., Piotech and Zhejiang Xiantong go up and down completely randomly.
Pair Corralation between Piotech and Zhejiang Xiantong
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Zhejiang Xiantong. But the stock apears to be less risky and, when comparing its historical volatility, Piotech Inc A is 1.5 times less risky than Zhejiang Xiantong. The stock trades about -0.3 of its potential returns per unit of risk. The 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 | 95.45% |
Values | Daily Returns |
Piotech Inc A vs. Zhejiang Xiantong RubberPlasti
Performance |
Timeline |
Piotech Inc A |
Zhejiang Xiantong |
Piotech and Zhejiang Xiantong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Piotech and Zhejiang Xiantong
The main advantage of trading using opposite Piotech and Zhejiang Xiantong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.Piotech vs. Ming Yang Smart | Piotech vs. 159681 | Piotech vs. 159005 | Piotech vs. Loctek Ergonomic Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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