Correlation Between Zhejiang Xinao and Zhejiang Merit
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By analyzing existing cross correlation between Zhejiang Xinao Textiles and Zhejiang Merit Interactive, you can compare the effects of market volatilities on Zhejiang Xinao and Zhejiang Merit 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 Xinao with a short position of Zhejiang Merit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Xinao and Zhejiang Merit.
Diversification Opportunities for Zhejiang Xinao and Zhejiang Merit
-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 Xinao Textiles and Zhejiang Merit Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Merit Inter and Zhejiang Xinao 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 Xinao Textiles are associated (or correlated) with Zhejiang Merit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Merit Inter has no effect on the direction of Zhejiang Xinao i.e., Zhejiang Xinao and Zhejiang Merit go up and down completely randomly.
Pair Corralation between Zhejiang Xinao and Zhejiang Merit
Assuming the 90 days trading horizon Zhejiang Xinao Textiles is expected to generate 1.03 times more return on investment than Zhejiang Merit. However, Zhejiang Xinao is 1.03 times more volatile than Zhejiang Merit Interactive. It trades about 0.13 of its potential returns per unit of risk. Zhejiang Merit Interactive is currently generating about -0.15 per unit of risk. 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 Xinao Textiles vs. Zhejiang Merit Interactive
Performance |
| Timeline |
| Zhejiang Xinao Textiles |
| Zhejiang Merit Inter |
Zhejiang Xinao and Zhejiang Merit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Xinao and Zhejiang Merit
The main advantage of trading using opposite Zhejiang Xinao and Zhejiang Merit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Xinao position performs unexpectedly, Zhejiang Merit 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 Merit will offset losses from the drop in Zhejiang Merit's long position.| Zhejiang Xinao vs. Anhui Hengyuan Coal | Zhejiang Xinao vs. Haoxiangni Jujube Co | Zhejiang Xinao vs. Shenzhen MYS Environmental | Zhejiang Xinao vs. AVIC Fund Management |
| Zhejiang Merit vs. Shenzhen MTC Co | Zhejiang Merit vs. Ming Yang Smart | Zhejiang Merit vs. 159681 | Zhejiang Merit vs. 159005 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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