Correlation Between Zhejiang Qianjiang and Shenzhen Bingchuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on Zhejiang Qianjiang and Shenzhen Bingchuan 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 Zhejiang Qianjiang with a short position of Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Shenzhen Bingchuan.
Diversification Opportunities for Zhejiang Qianjiang and Shenzhen Bingchuan
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Shenzhen is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan and Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle are associated (or correlated) with Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Shenzhen Bingchuan
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to under-perform the Shenzhen Bingchuan. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Qianjiang Motorcycle is 1.94 times less risky than Shenzhen Bingchuan. The stock trades about -0.09 of its potential returns per unit of risk. The Shenzhen Bingchuan Network is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,840 in Shenzhen Bingchuan Network on September 1, 2024 and sell it today you would earn a total of 493.00 from holding Shenzhen Bingchuan Network or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Shenzhen Bingchuan Network
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Shenzhen Bingchuan |
Zhejiang Qianjiang and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Shenzhen Bingchuan
The main advantage of trading using opposite Zhejiang Qianjiang and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, Shenzhen Bingchuan 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 Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| Zhejiang Qianjiang vs. Industrial and Commercial | Zhejiang Qianjiang vs. Agricultural Bank of | Zhejiang Qianjiang vs. China Construction Bank | Zhejiang Qianjiang vs. Bank of China |
| Shenzhen Bingchuan vs. Shenzhen MYS Environmental | Shenzhen Bingchuan vs. AVIC Fund Management | Shenzhen Bingchuan vs. Penghua Shenzhen Energy | Shenzhen Bingchuan vs. Jizhong Energy Resources |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |