Correlation Between Shenzhen Centralcon and Xinjiang Communications
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Xinjiang Communications Construction, you can compare the effects of market volatilities on Shenzhen Centralcon and Xinjiang Communications 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 Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Xinjiang Communications.
Diversification Opportunities for Shenzhen Centralcon and Xinjiang Communications
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Xinjiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Xinjiang Communications
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Xinjiang Communications. In addition to that, Shenzhen Centralcon is 1.47 times more volatile than Xinjiang Communications Construction. It trades about -0.37 of its total potential returns per unit of risk. Xinjiang Communications Construction is currently generating about -0.32 per unit of volatility. If you would invest 1,232 in Xinjiang Communications Construction on October 17, 2024 and sell it today you would lose (176.00) from holding Xinjiang Communications Construction or give up 14.29% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Shenzhen Centralcon |
| Xinjiang Communications |
Shenzhen Centralcon and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Xinjiang Communications
The main advantage of trading using opposite Shenzhen Centralcon and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Xinjiang Communications 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 Communications will offset losses from the drop in Xinjiang Communications' long position.| Shenzhen Centralcon vs. China Mobile Limited | Shenzhen Centralcon vs. Juneyao Airlines | Shenzhen Centralcon vs. Porton Fine Chemicals | Shenzhen Centralcon vs. Ningbo Fangzheng Automobile |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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