Correlation Between Shenzhen Centralcon and Zhejiang Juhua
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Zhejiang Juhua Co, you can compare the effects of market volatilities on Shenzhen Centralcon and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Zhejiang Juhua.
Diversification Opportunities for Shenzhen Centralcon and Zhejiang Juhua
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Zhejiang Juhua
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.3 times more return on investment than Zhejiang Juhua. However, Shenzhen Centralcon is 1.3 times more volatile than Zhejiang Juhua Co. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.03 per unit of risk. If you would invest 508.00 in Shenzhen Centralcon Investment on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Shenzhen Centralcon Investment or generate 6.3% 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. Zhejiang Juhua Co
Performance |
| Timeline |
| Shenzhen Centralcon |
| Zhejiang Juhua |
Shenzhen Centralcon and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Zhejiang Juhua
The main advantage of trading using opposite Shenzhen Centralcon and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua'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 |
| Zhejiang Juhua vs. Guangdong Marubi Biotechnology | Zhejiang Juhua vs. Central Plains Environment | Zhejiang Juhua vs. Shanghai Rendu Biotechnology | Zhejiang Juhua vs. Maccura Biotechnology 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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