Correlation Between Shenzhen Centralcon and Anhui Huilong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Centralcon Investment and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Shenzhen Centralcon and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Anhui Huilong.
Diversification Opportunities for Shenzhen Centralcon and Anhui Huilong
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Anhui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Anhui Huilong go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Anhui Huilong
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.31 times more return on investment than Anhui Huilong. However, Shenzhen Centralcon is 1.31 times more volatile than Anhui Huilong Agricultural. It trades about 0.06 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about 0.05 per unit of risk. If you would invest 349.00 in Shenzhen Centralcon Investment on November 8, 2024 and sell it today you would earn a total of 154.00 from holding Shenzhen Centralcon Investment or generate 44.13% 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. Anhui Huilong Agricultural
Performance |
| Timeline |
| Shenzhen Centralcon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anhui Huilong Agricu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shenzhen Centralcon and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Anhui Huilong
The main advantage of trading using opposite Shenzhen Centralcon and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.The idea behind Shenzhen Centralcon Investment and Anhui Huilong Agricultural pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |