Correlation Between Shenzhen Centralcon and Shanghai Huayi
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Shanghai Huayi Group, you can compare the effects of market volatilities on Shenzhen Centralcon and Shanghai Huayi 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 Shanghai Huayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Shanghai Huayi.
Diversification Opportunities for Shenzhen Centralcon and Shanghai Huayi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Shanghai Huayi Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Huayi Group 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 Shanghai Huayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Huayi Group has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Shanghai Huayi go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Shanghai Huayi
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 2.08 times more return on investment than Shanghai Huayi. However, Shenzhen Centralcon is 2.08 times more volatile than Shanghai Huayi Group. It trades about 0.18 of its potential returns per unit of risk. Shanghai Huayi Group is currently generating about 0.13 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 | 95.65% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Shanghai Huayi Group
Performance |
| Timeline |
| Shenzhen Centralcon |
| Shanghai Huayi Group |
Shenzhen Centralcon and Shanghai Huayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Shanghai Huayi
The main advantage of trading using opposite Shenzhen Centralcon and Shanghai Huayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Shanghai Huayi 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 Shanghai Huayi will offset losses from the drop in Shanghai Huayi'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 |
| Shanghai Huayi vs. Zijin Mining Group | Shanghai Huayi vs. Wanhua Chemical Group | Shanghai Huayi vs. Baoshan Iron Steel | Shanghai Huayi vs. Shandong Gold Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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