Correlation Between Shenzhen Centralcon and Bank of XiAn
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Centralcon Investment and Bank of XiAn, you can compare the effects of market volatilities on Shenzhen Centralcon and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Bank of XiAn.
Diversification Opportunities for Shenzhen Centralcon and Bank of XiAn
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Bank is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Bank of XiAn go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Bank of XiAn
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Bank of XiAn. In addition to that, Shenzhen Centralcon is 2.22 times more volatile than Bank of XiAn. It trades about -0.01 of its total potential returns per unit of risk. Bank of XiAn is currently generating about 0.02 per unit of volatility. If you would invest 349.00 in Bank of XiAn on September 12, 2024 and sell it today you would earn a total of 32.00 from holding Bank of XiAn or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Bank of XiAn
Performance |
| Timeline |
| Shenzhen Centralcon |
| Bank of XiAn |
Shenzhen Centralcon and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Bank of XiAn
The main advantage of trading using opposite Shenzhen Centralcon and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn'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 |
| Bank of XiAn vs. Hang Xiao Steel | Bank of XiAn vs. Heilongjiang Transport Development | Bank of XiAn vs. Sino Platinum Metals Co | Bank of XiAn vs. Jiaozuo Wanfang Aluminum |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |