Correlation Between Shenzhen Topway and Zhejiang Kingland
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By analyzing existing cross correlation between Shenzhen Topway Video and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Shenzhen Topway and Zhejiang Kingland 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 Topway with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Zhejiang Kingland.
Diversification Opportunities for Shenzhen Topway and Zhejiang Kingland
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland and Shenzhen Topway 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 Topway Video are associated (or correlated) with Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Zhejiang Kingland
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to generate 1.82 times more return on investment than Zhejiang Kingland. However, Shenzhen Topway is 1.82 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.0 per unit of risk. If you would invest 766.00 in Shenzhen Topway Video on November 27, 2024 and sell it today you would earn a total of 248.00 from holding Shenzhen Topway Video or generate 32.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Shenzhen Topway Video |
| Zhejiang Kingland |
Shenzhen Topway and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Zhejiang Kingland
The main advantage of trading using opposite Shenzhen Topway and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Zhejiang Kingland 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 Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Shenzhen Topway vs. Industrial and Commercial | Shenzhen Topway vs. Agricultural Bank of | Shenzhen Topway vs. China Construction Bank | Shenzhen Topway vs. Bank of China |
| Zhejiang Kingland vs. Suzhou Oriental Semiconductor | Zhejiang Kingland vs. Fujian Anjoy Foods | Zhejiang Kingland vs. Guangzhou Seagull Kitchen | Zhejiang Kingland vs. Guangdong Wens Foodstuff |
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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