Correlation Between Zhongshan Public and Shenzhen
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By analyzing existing cross correlation between Zhongshan Public Utilities and Shenzhen AV Display Co, you can compare the effects of market volatilities on Zhongshan Public and Shenzhen 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 Zhongshan Public with a short position of Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Shenzhen.
Diversification Opportunities for Zhongshan Public and Shenzhen
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongshan and Shenzhen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Shenzhen go up and down completely randomly.
Pair Corralation between Zhongshan Public and Shenzhen
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.47 times more return on investment than Shenzhen. However, Zhongshan Public Utilities is 2.12 times less risky than Shenzhen. It trades about -0.22 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.13 per unit of risk. If you would invest 924.00 in Zhongshan Public Utilities on October 11, 2024 and sell it today you would lose (68.00) from holding Zhongshan Public Utilities or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Zhongshan Public Uti |
| Shenzhen AV Display |
Zhongshan Public and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Shenzhen
The main advantage of trading using opposite Zhongshan Public and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Zhongshan Public vs. Fiberhome Telecommunication Technologies | Zhongshan Public vs. AUPU Home Style | Zhongshan Public vs. Chahua Modern Housewares | Zhongshan Public vs. Anhui Transport Consulting |
| Shenzhen vs. Zhongshan Public Utilities | Shenzhen vs. Kingsignal Technology Co | Shenzhen vs. Kuangda Technology Group | Shenzhen vs. CIMC Vehicles 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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