Correlation Between Shenzhen Centralcon and Suzhou Weizhixiang
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Shenzhen Centralcon and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Suzhou Weizhixiang.
Diversification Opportunities for Shenzhen Centralcon and Suzhou Weizhixiang
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Suzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Suzhou Weizhixiang
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.17 times more return on investment than Suzhou Weizhixiang. However, Shenzhen Centralcon is 1.17 times more volatile than Suzhou Weizhixiang Food. It trades about -0.02 of its potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about -0.03 per unit of risk. If you would invest 860.00 in Shenzhen Centralcon Investment on September 4, 2024 and sell it today you would lose (318.00) from holding Shenzhen Centralcon Investment or give up 36.98% 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. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Shenzhen Centralcon |
| Suzhou Weizhixiang Food |
Shenzhen Centralcon and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Suzhou Weizhixiang
The main advantage of trading using opposite Shenzhen Centralcon and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Shenzhen Centralcon vs. Lander Sports Development | Shenzhen Centralcon vs. Longxing Chemical Stock | Shenzhen Centralcon vs. Miracll Chemicals Co | Shenzhen Centralcon vs. Sportsoul Co Ltd |
| Suzhou Weizhixiang vs. Poly Real Estate | Suzhou Weizhixiang vs. China Vanke Co | Suzhou Weizhixiang vs. China Merchants Shekou | Suzhou Weizhixiang vs. Huafa Industrial 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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