Correlation Between Shenzhen Laibao and Zhejiang Qianjiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Laibao High Technology and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Shenzhen Laibao and Zhejiang Qianjiang 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 Shenzhen Laibao with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Laibao and Zhejiang Qianjiang.
Diversification Opportunities for Shenzhen Laibao and Zhejiang Qianjiang
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Laibao High Technolog and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and Shenzhen Laibao 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 Shenzhen Laibao High Technology are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Shenzhen Laibao i.e., Shenzhen Laibao and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Shenzhen Laibao and Zhejiang Qianjiang
Assuming the 90 days trading horizon Shenzhen Laibao High Technology is expected to generate 1.16 times more return on investment than Zhejiang Qianjiang. However, Shenzhen Laibao is 1.16 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.17 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.02 per unit of risk. If you would invest 839.00 in Shenzhen Laibao High Technology on August 30, 2024 and sell it today you would earn a total of 317.00 from holding Shenzhen Laibao High Technology or generate 37.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Laibao High Technolog vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Shenzhen Laibao High |
| Zhejiang Qianjiang |
Shenzhen Laibao and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Laibao and Zhejiang Qianjiang
The main advantage of trading using opposite Shenzhen Laibao and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Laibao position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Shenzhen Laibao vs. Focus Media Information | Shenzhen Laibao vs. Beijing Sanyuan Foods | Shenzhen Laibao vs. Xiamen Jihong Package | Shenzhen Laibao vs. AVCON Information Tech |
| Zhejiang Qianjiang vs. Shengda Mining Co | Zhejiang Qianjiang vs. Shandong Hongchuang Aluminum | Zhejiang Qianjiang vs. Hefei Metalforming Mach | Zhejiang Qianjiang vs. China Aluminum International |
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.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |