Correlation Between Zhongshan Broad and Shantui Construction
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By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and Shantui Construction Machinery, you can compare the effects of market volatilities on Zhongshan Broad and Shantui Construction 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 Zhongshan Broad with a short position of Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad and Shantui Construction.
Diversification Opportunities for Zhongshan Broad and Shantui Construction
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongshan and Shantui is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction and Zhongshan Broad 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 Zhongshan Broad Ocean Motor are associated (or correlated) with Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Zhongshan Broad i.e., Zhongshan Broad and Shantui Construction go up and down completely randomly.
Pair Corralation between Zhongshan Broad and Shantui Construction
Assuming the 90 days trading horizon Zhongshan Broad Ocean Motor is expected to generate 1.19 times more return on investment than Shantui Construction. However, Zhongshan Broad is 1.19 times more volatile than Shantui Construction Machinery. It trades about 0.1 of its potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.11 per unit of risk. If you would invest 553.00 in Zhongshan Broad Ocean Motor on October 24, 2024 and sell it today you would earn a total of 34.00 from holding Zhongshan Broad Ocean Motor or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. Shantui Construction Machinery
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| Shantui Construction |
Zhongshan Broad and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad and Shantui Construction
The main advantage of trading using opposite Zhongshan Broad and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Zhongshan Broad vs. Malion New Materials | Zhongshan Broad vs. Konfoong Materials International | Zhongshan Broad vs. China Building Material | Zhongshan Broad vs. Suzhou Xingye Material |
| Shantui Construction vs. Zhongshan Broad Ocean Motor | Shantui Construction vs. Hunan TV Broadcast | Shantui Construction vs. Highbroad Advanced Material | Shantui Construction vs. Xinjiang Beixin RoadBridge |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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