Correlation Between Shenzhen Centralcon and Dalian Thermal
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Dalian Thermal Power, you can compare the effects of market volatilities on Shenzhen Centralcon and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Dalian Thermal.
Diversification Opportunities for Shenzhen Centralcon and Dalian Thermal
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Dalian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Dalian Thermal go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Dalian Thermal
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 0.71 times more return on investment than Dalian Thermal. However, Shenzhen Centralcon Investment is 1.41 times less risky than Dalian Thermal. It trades about 0.18 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about 0.02 per unit of risk. If you would invest 528.00 in Shenzhen Centralcon Investment on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Shenzhen Centralcon Investment or generate 10.04% 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. Dalian Thermal Power
Performance |
| Timeline |
| Shenzhen Centralcon |
| Dalian Thermal Power |
Shenzhen Centralcon and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Dalian Thermal
The main advantage of trading using opposite Shenzhen Centralcon and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal'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 |
| Dalian Thermal vs. Jinhe Biotechnology Co | Dalian Thermal vs. Jiujiang Shanshui Technology | Dalian Thermal vs. Northking Information Technology | Dalian Thermal vs. Jiangxi JDL Environmental |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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