Correlation Between Shenzhen Centralcon and TianJin 712
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and TianJin 712 Communication, you can compare the effects of market volatilities on Shenzhen Centralcon and TianJin 712 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 TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and TianJin 712.
Diversification Opportunities for Shenzhen Centralcon and TianJin 712
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and TianJin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication 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 TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and TianJin 712 go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and TianJin 712
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.15 times more return on investment than TianJin 712. However, Shenzhen Centralcon is 1.15 times more volatile than TianJin 712 Communication. It trades about -0.01 of its potential returns per unit of risk. TianJin 712 Communication is currently generating about -0.02 per unit of risk. If you would invest 798.00 in Shenzhen Centralcon Investment on September 14, 2024 and sell it today you would lose (211.00) from holding Shenzhen Centralcon Investment or give up 26.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. TianJin 712 Communication
Performance |
| Timeline |
| Shenzhen Centralcon |
| TianJin 712 Communication |
Shenzhen Centralcon and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and TianJin 712
The main advantage of trading using opposite Shenzhen Centralcon and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712'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 |
| TianJin 712 vs. Guangzhou Haige Communications | TianJin 712 vs. Zhongtong Guomai Communication | TianJin 712 vs. Zhengzhou Coal Mining | TianJin 712 vs. Changchun Faway Automobile |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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