Correlation Between Shenzhen Centralcon and Guizhou Chanhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Centralcon Investment and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Shenzhen Centralcon and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Guizhou Chanhen.
Diversification Opportunities for Shenzhen Centralcon and Guizhou Chanhen
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Guizhou is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Guizhou Chanhen
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Guizhou Chanhen. In addition to that, Shenzhen Centralcon is 1.42 times more volatile than Guizhou Chanhen Chemical. It trades about 0.0 of its total potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about 0.07 per unit of volatility. If you would invest 1,560 in Guizhou Chanhen Chemical on October 20, 2024 and sell it today you would earn a total of 660.00 from holding Guizhou Chanhen Chemical or generate 42.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Shenzhen Centralcon |
| Guizhou Chanhen Chemical |
Shenzhen Centralcon and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Guizhou Chanhen
The main advantage of trading using opposite Shenzhen Centralcon and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.The idea behind Shenzhen Centralcon Investment and Guizhou Chanhen Chemical 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.
| Guizhou Chanhen vs. Tieling Newcity Investment | Guizhou Chanhen vs. Chengtun Mining Group | Guizhou Chanhen vs. Beijing Mainstreets Investment | Guizhou Chanhen vs. Hainan Mining Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |