Correlation Between Zhongshan Public and China Asset
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By analyzing existing cross correlation between Zhongshan Public Utilities and China Asset Management, you can compare the effects of market volatilities on Zhongshan Public and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and China Asset.
Diversification Opportunities for Zhongshan Public and China Asset
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhongshan and China is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and China Asset go up and down completely randomly.
Pair Corralation between Zhongshan Public and China Asset
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to under-perform the China Asset. In addition to that, Zhongshan Public is 1.5 times more volatile than China Asset Management. It trades about -0.13 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.5 per unit of volatility. If you would invest 355.00 in China Asset Management on October 26, 2024 and sell it today you would earn a total of 40.00 from holding China Asset Management or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. China Asset Management
Performance |
| Timeline |
| Zhongshan Public Uti |
| China Asset Management |
Zhongshan Public and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and China Asset
The main advantage of trading using opposite Zhongshan Public and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Zhongshan Public vs. Industrial and Commercial | Zhongshan Public vs. China Construction Bank | Zhongshan Public vs. Agricultural Bank of | Zhongshan Public vs. Bank of China |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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