Correlation Between Shenzhen Centralcon and Zoje Resources
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Zoje Resources Investment, you can compare the effects of market volatilities on Shenzhen Centralcon and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Zoje Resources.
Diversification Opportunities for Shenzhen Centralcon and Zoje Resources
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Zoje is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Zoje Resources go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Zoje Resources
Assuming the 90 days trading horizon Shenzhen Centralcon is expected to generate 2.5 times less return on investment than Zoje Resources. But when comparing it to its historical volatility, Shenzhen Centralcon Investment is 1.66 times less risky than Zoje Resources. It trades about 0.18 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 269.00 in Zoje Resources Investment on September 13, 2024 and sell it today you would earn a total of 72.00 from holding Zoje Resources Investment or generate 26.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Zoje Resources Investment
Performance |
| Timeline |
| Shenzhen Centralcon |
| Zoje Resources Investment |
Shenzhen Centralcon and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Zoje Resources
The main advantage of trading using opposite Shenzhen Centralcon and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec Co |
| Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Kweichow Moutai Co | Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. China Mobile Limited |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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