Correlation Between Shantui Construction and Zhongzhu Medical
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By analyzing existing cross correlation between Shantui Construction Machinery and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Shantui Construction and Zhongzhu Medical 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 Shantui Construction with a short position of Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and Zhongzhu Medical.
Diversification Opportunities for Shantui Construction and Zhongzhu Medical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shantui and Zhongzhu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Shantui Construction i.e., Shantui Construction and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Shantui Construction and Zhongzhu Medical
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 0.84 times more return on investment than Zhongzhu Medical. However, Shantui Construction Machinery is 1.19 times less risky than Zhongzhu Medical. It trades about -0.03 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.41 per unit of risk. If you would invest 984.00 in Shantui Construction Machinery on October 13, 2024 and sell it today you would lose (16.00) from holding Shantui Construction Machinery or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Shantui Construction |
| Zhongzhu Medical Holdings |
Shantui Construction and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and Zhongzhu Medical
The main advantage of trading using opposite Shantui Construction and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Shantui Construction vs. BYD Co Ltd | Shantui Construction vs. China Mobile Limited | Shantui Construction vs. Agricultural Bank of | Shantui Construction vs. Industrial and Commercial |
| Zhongzhu Medical vs. Shantui Construction Machinery | Zhongzhu Medical vs. Sinomach General Machinery | Zhongzhu Medical vs. Weichai Heavy Machinery | Zhongzhu Medical vs. Nanxing Furniture Machinery |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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