Correlation Between Shenzhen Centralcon and Zhejiang Construction
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Zhejiang Construction Investment, you can compare the effects of market volatilities on Shenzhen Centralcon and Zhejiang 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Zhejiang Construction.
Diversification Opportunities for Shenzhen Centralcon and Zhejiang Construction
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Zhejiang Construction
Assuming the 90 days trading horizon Shenzhen Centralcon is expected to generate 1.15 times less return on investment than Zhejiang Construction. In addition to that, Shenzhen Centralcon is 1.22 times more volatile than Zhejiang Construction Investment. It trades about 0.02 of its total potential returns per unit of risk. Zhejiang Construction Investment is currently generating about 0.02 per unit of volatility. If you would invest 1,009 in Zhejiang Construction Investment on September 14, 2024 and sell it today you would earn a total of 50.00 from holding Zhejiang Construction Investment or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Shenzhen Centralcon |
| Zhejiang Construction |
Shenzhen Centralcon and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Zhejiang Construction
The main advantage of trading using opposite Shenzhen Centralcon and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Zhejiang 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's 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 |
| Zhejiang Construction vs. Sinomach General Machinery | Zhejiang Construction vs. Qijing Machinery | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Panda Financial Holding |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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