Correlation Between Shenzhen Hifuture and ZTE Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Hifuture Electric and ZTE Corp, you can compare the effects of market volatilities on Shenzhen Hifuture and ZTE Corp 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 Hifuture with a short position of ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and ZTE Corp.
Diversification Opportunities for Shenzhen Hifuture and ZTE Corp
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and ZTE is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp and Shenzhen Hifuture 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 Hifuture Electric are associated (or correlated) with ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and ZTE Corp go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and ZTE Corp
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 0.91 times more return on investment than ZTE Corp. However, Shenzhen Hifuture Electric is 1.1 times less risky than ZTE Corp. It trades about 0.22 of its potential returns per unit of risk. ZTE Corp is currently generating about 0.0 per unit of risk. If you would invest 242.00 in Shenzhen Hifuture Electric on August 28, 2024 and sell it today you would earn a total of 33.00 from holding Shenzhen Hifuture Electric or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. ZTE Corp
Performance |
| Timeline |
| Shenzhen Hifuture |
| ZTE Corp |
Shenzhen Hifuture and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and ZTE Corp
The main advantage of trading using opposite Shenzhen Hifuture and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| Shenzhen Hifuture vs. Anhui Deli Household | Shenzhen Hifuture vs. Tianjin Hi Tech Development | Shenzhen Hifuture vs. Juneyao Airlines | Shenzhen Hifuture vs. Shanghai Metersbonwe FashionAccessories |
| ZTE Corp vs. Sichuan Teway Food | ZTE Corp vs. Anji Foodstuff Co | ZTE Corp vs. Ningbo Ligong Online | ZTE Corp vs. Yankershop Food 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |