Correlation Between Shenzhen Centralcon and Shanghai Pudong
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Shanghai Pudong Development, you can compare the effects of market volatilities on Shenzhen Centralcon and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Shanghai Pudong.
Diversification Opportunities for Shenzhen Centralcon and Shanghai Pudong
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Shanghai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Shanghai Pudong
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.81 times more return on investment than Shanghai Pudong. However, Shenzhen Centralcon is 1.81 times more volatile than Shanghai Pudong Development. It trades about 0.2 of its potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.13 per unit of risk. If you would invest 371.00 in Shenzhen Centralcon Investment on September 3, 2024 and sell it today you would earn a total of 169.00 from holding Shenzhen Centralcon Investment or generate 45.55% 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. Shanghai Pudong Development
Performance |
| Timeline |
| Shenzhen Centralcon |
| Shanghai Pudong Deve |
Shenzhen Centralcon and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Shanghai Pudong
The main advantage of trading using opposite Shenzhen Centralcon and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong's long position.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| Shanghai Pudong vs. Jilin Jlu Communication | Shanghai Pudong vs. Zhongtong Guomai Communication | Shanghai Pudong vs. Wintao Communications Co | Shanghai Pudong vs. Muyuan Foodstuff 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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