Correlation Between Shenzhen Centralcon and Shantui Construction
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Shantui Construction Machinery, you can compare the effects of market volatilities on Shenzhen Centralcon and Shantui Construction 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 Shenzhen Centralcon with a short position of Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Shantui Construction.
Diversification Opportunities for Shenzhen Centralcon and Shantui Construction
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Shantui is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Shantui Construction go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Shantui Construction
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Shantui Construction. In addition to that, Shenzhen Centralcon is 1.73 times more volatile than Shantui Construction Machinery. It trades about -0.32 of its total potential returns per unit of risk. Shantui Construction Machinery is currently generating about -0.01 per unit of volatility. If you would invest 1,000.00 in Shantui Construction Machinery on October 11, 2024 and sell it today you would lose (6.00) from holding Shantui Construction Machinery or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Shantui Construction Machinery
Performance |
| Timeline |
| Shenzhen Centralcon |
| Shantui Construction |
Shenzhen Centralcon and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Shantui Construction
The main advantage of trading using opposite Shenzhen Centralcon and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Shenzhen Centralcon vs. Easyhome New Retail | Shenzhen Centralcon vs. Guangzhou Haozhi Industrial | Shenzhen Centralcon vs. Beijing Kingsoft Office | Shenzhen Centralcon vs. Rising Nonferrous Metals |
| Shantui Construction vs. Shenzhen Centralcon Investment | Shantui Construction vs. Zoje Resources Investment | Shantui Construction vs. Shanghai Material Trading | Shantui Construction vs. Huatian Hotel Group |
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 Positions Ratings module to 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.
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