Correlation Between Shenzhen Centralcon and Jiangxi Hengda
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Shenzhen Centralcon and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Jiangxi Hengda.
Diversification Opportunities for Shenzhen Centralcon and Jiangxi Hengda
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Jiangxi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Jiangxi Hengda
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Jiangxi Hengda. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Centralcon Investment is 1.45 times less risky than Jiangxi Hengda. The stock trades about -0.27 of its potential returns per unit of risk. The Jiangxi Hengda Hi Tech is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 587.00 in Jiangxi Hengda Hi Tech on October 18, 2024 and sell it today you would lose (75.00) from holding Jiangxi Hengda Hi Tech or give up 12.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Shenzhen Centralcon |
| Jiangxi Hengda Hi |
Shenzhen Centralcon and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Jiangxi Hengda
The main advantage of trading using opposite Shenzhen Centralcon and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Shenzhen Centralcon vs. Shenzhen Noposion Agrochemicals | Shenzhen Centralcon vs. Tibet Huayu Mining | Shenzhen Centralcon vs. Shandong Rike Chemical | Shenzhen Centralcon vs. Jinsanjiang Silicon Material |
| Jiangxi Hengda vs. Tieling Newcity Investment | Jiangxi Hengda vs. Chengdu Xingrong Investment | Jiangxi Hengda vs. Henan Shuanghui Investment | Jiangxi Hengda vs. Shenzhen Centralcon 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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