Correlation Between Xiandai Investment and Shenzhen Coship
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By analyzing existing cross correlation between Xiandai Investment Co and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Xiandai Investment and Shenzhen Coship 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 Xiandai Investment with a short position of Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Shenzhen Coship.
Diversification Opportunities for Xiandai Investment and Shenzhen Coship
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiandai and Shenzhen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Xiandai Investment and Shenzhen Coship
Assuming the 90 days trading horizon Xiandai Investment Co is expected to under-perform the Shenzhen Coship. But the stock apears to be less risky and, when comparing its historical volatility, Xiandai Investment Co is 2.63 times less risky than Shenzhen Coship. The stock trades about -0.13 of its potential returns per unit of risk. The Shenzhen Coship Electronics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Shenzhen Coship Electronics on October 28, 2024 and sell it today you would earn a total of 79.00 from holding Shenzhen Coship Electronics or generate 14.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Xiandai Investment |
| Shenzhen Coship Elec |
Xiandai Investment and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Shenzhen Coship
The main advantage of trading using opposite Xiandai Investment and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Shenzhen Coship 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 Coship will offset losses from the drop in Shenzhen Coship's long position.| Xiandai Investment vs. PetroChina Co Ltd | Xiandai Investment vs. China Mobile Limited | Xiandai Investment vs. CNOOC Limited | Xiandai Investment vs. Ping An Insurance |
| Shenzhen Coship vs. Zhongyin Babi Food | Shenzhen Coship vs. Hainan Haiqi Transportation | Shenzhen Coship vs. Shenzhen Urban Transport | Shenzhen Coship vs. Dazhong Transportation Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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