Correlation Between Shenzhen Centralcon and Xinjiang Tianshun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Centralcon Investment and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Shenzhen Centralcon and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Xinjiang Tianshun.
Diversification Opportunities for Shenzhen Centralcon and Xinjiang Tianshun
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Xinjiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Xinjiang Tianshun
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.1 times more return on investment than Xinjiang Tianshun. However, Shenzhen Centralcon is 1.1 times more volatile than Xinjiang Tianshun Supply. It trades about 0.24 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.2 per unit of risk. If you would invest 360.00 in Shenzhen Centralcon Investment on September 12, 2024 and sell it today you would earn a total of 221.00 from holding Shenzhen Centralcon Investment or generate 61.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Shenzhen Centralcon |
| Xinjiang Tianshun Supply |
Shenzhen Centralcon and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Xinjiang Tianshun
The main advantage of trading using opposite Shenzhen Centralcon and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun'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 |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |