Correlation Between Shenzhen Centralcon and Beijing Quanshi
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Beijing Quanshi World, you can compare the effects of market volatilities on Shenzhen Centralcon and Beijing Quanshi 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 Beijing Quanshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Beijing Quanshi.
Diversification Opportunities for Shenzhen Centralcon and Beijing Quanshi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Beijing Quanshi World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Quanshi World 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 Beijing Quanshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Quanshi World has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Beijing Quanshi go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Beijing Quanshi
Assuming the 90 days trading horizon Shenzhen Centralcon is expected to generate 2.34 times less return on investment than Beijing Quanshi. But when comparing it to its historical volatility, Shenzhen Centralcon Investment is 2.62 times less risky than Beijing Quanshi. It trades about 0.18 of its potential returns per unit of risk. Beijing Quanshi World is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,001 in Beijing Quanshi World on September 13, 2024 and sell it today you would earn a total of 428.00 from holding Beijing Quanshi World or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Beijing Quanshi World
Performance |
| Timeline |
| Shenzhen Centralcon |
| Beijing Quanshi World |
Shenzhen Centralcon and Beijing Quanshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Beijing Quanshi
The main advantage of trading using opposite Shenzhen Centralcon and Beijing Quanshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Beijing Quanshi 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 Beijing Quanshi will offset losses from the drop in Beijing Quanshi'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 |
| Beijing Quanshi vs. Great Sun Foods Co | Beijing Quanshi vs. China Nonferrous Metal | Beijing Quanshi vs. V V Food | Beijing Quanshi vs. Zhejiang Yayi Metal |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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