Correlation Between Zhongshan Broad-Ocean and Sinocelltech Group
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By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and Sinocelltech Group, you can compare the effects of market volatilities on Zhongshan Broad-Ocean and Sinocelltech Group 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-Ocean with a short position of Sinocelltech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad-Ocean and Sinocelltech Group.
Diversification Opportunities for Zhongshan Broad-Ocean and Sinocelltech Group
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhongshan and Sinocelltech is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group and Zhongshan Broad-Ocean 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 Sinocelltech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Zhongshan Broad-Ocean i.e., Zhongshan Broad-Ocean and Sinocelltech Group go up and down completely randomly.
Pair Corralation between Zhongshan Broad-Ocean and Sinocelltech Group
Assuming the 90 days trading horizon Zhongshan Broad Ocean Motor is expected to generate 0.67 times more return on investment than Sinocelltech Group. However, Zhongshan Broad Ocean Motor is 1.48 times less risky than Sinocelltech Group. It trades about 0.1 of its potential returns per unit of risk. Sinocelltech Group is currently generating about 0.0 per unit of risk. If you would invest 449.00 in Zhongshan Broad Ocean Motor on November 3, 2024 and sell it today you would earn a total of 125.00 from holding Zhongshan Broad Ocean Motor or generate 27.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. Sinocelltech Group
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| Sinocelltech Group |
Zhongshan Broad-Ocean and Sinocelltech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad-Ocean and Sinocelltech Group
The main advantage of trading using opposite Zhongshan Broad-Ocean and Sinocelltech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad-Ocean position performs unexpectedly, Sinocelltech Group 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 Sinocelltech Group will offset losses from the drop in Sinocelltech Group's long position.| Zhongshan Broad-Ocean vs. Mengtian Home Group | Zhongshan Broad-Ocean vs. Zoy Home Furnishing | Zhongshan Broad-Ocean vs. Easyhome New Retail | Zhongshan Broad-Ocean vs. Dareway Software Co |
| Sinocelltech Group vs. Ingenic Semiconductor | Sinocelltech Group vs. Thinkon Semiconductor Jinzhou | Sinocelltech Group vs. Zbit Semiconductor A | Sinocelltech Group vs. GRINM Semiconductor Materials |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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