Correlation Between Shenzhen Hifuture and Zhongtong Guomai
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Shenzhen Hifuture and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Zhongtong Guomai.
Diversification Opportunities for Shenzhen Hifuture and Zhongtong Guomai
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Zhongtong is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Zhongtong Guomai
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Zhongtong Guomai. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 1.25 times less risky than Zhongtong Guomai. The stock trades about -0.32 of its potential returns per unit of risk. The Zhongtong Guomai Communication is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 824.00 in Zhongtong Guomai Communication on October 28, 2024 and sell it today you would lose (120.00) from holding Zhongtong Guomai Communication or give up 14.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Shenzhen Hifuture |
| Zhongtong Guomai Com |
Shenzhen Hifuture and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Zhongtong Guomai
The main advantage of trading using opposite Shenzhen Hifuture and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Shenzhen Hifuture vs. Lotus Health Group | Shenzhen Hifuture vs. Anhui Huaren Health | Shenzhen Hifuture vs. PKU HealthCare Corp | Shenzhen Hifuture vs. Shandong Sinoglory Health |
| Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. Poly Real Estate | Zhongtong Guomai vs. China Vanke Co | Zhongtong Guomai vs. China Merchants Shekou |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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