Correlation Between Zhejiang Merit and Zhejiang Xinao
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By analyzing existing cross correlation between Zhejiang Merit Interactive and Zhejiang Xinao Textiles, you can compare the effects of market volatilities on Zhejiang Merit and Zhejiang Xinao 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 Merit with a short position of Zhejiang Xinao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Merit and Zhejiang Xinao.
Diversification Opportunities for Zhejiang Merit and Zhejiang Xinao
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zhejiang and Zhejiang is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Merit Interactive and Zhejiang Xinao Textiles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Xinao Textiles and Zhejiang Merit 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 Merit Interactive are associated (or correlated) with Zhejiang Xinao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Xinao Textiles has no effect on the direction of Zhejiang Merit i.e., Zhejiang Merit and Zhejiang Xinao go up and down completely randomly.
Pair Corralation between Zhejiang Merit and Zhejiang Xinao
Assuming the 90 days trading horizon Zhejiang Merit Interactive is expected to under-perform the Zhejiang Xinao. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Merit Interactive is 1.03 times less risky than Zhejiang Xinao. The stock trades about -0.15 of its potential returns per unit of risk. The Zhejiang Xinao Textiles is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 605.00 in Zhejiang Xinao Textiles on August 27, 2025 and sell it today you would earn a total of 138.00 from holding Zhejiang Xinao Textiles or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Merit Interactive vs. Zhejiang Xinao Textiles
Performance |
| Timeline |
| Zhejiang Merit Inter |
| Zhejiang Xinao Textiles |
Zhejiang Merit and Zhejiang Xinao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Merit and Zhejiang Xinao
The main advantage of trading using opposite Zhejiang Merit and Zhejiang Xinao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Merit position performs unexpectedly, Zhejiang Xinao 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 Xinao will offset losses from the drop in Zhejiang Xinao's long position.| Zhejiang Merit vs. Shenzhen MTC Co | Zhejiang Merit vs. Ming Yang Smart | Zhejiang Merit vs. 159681 | Zhejiang Merit vs. 159005 |
| Zhejiang Xinao vs. Anhui Hengyuan Coal | Zhejiang Xinao vs. Haoxiangni Jujube Co | Zhejiang Xinao vs. Shenzhen MYS Environmental | Zhejiang Xinao vs. AVIC Fund Management |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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