Correlation Between Shenzhen MTC and ZJBC Information
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By analyzing existing cross correlation between Shenzhen MTC Co and ZJBC Information Technology, you can compare the effects of market volatilities on Shenzhen MTC and ZJBC Information 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 MTC with a short position of ZJBC Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and ZJBC Information.
Diversification Opportunities for Shenzhen MTC and ZJBC Information
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and ZJBC is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC Co and ZJBC Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZJBC Information Tec and Shenzhen MTC 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 MTC Co are associated (or correlated) with ZJBC Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZJBC Information Tec has no effect on the direction of Shenzhen MTC i.e., Shenzhen MTC and ZJBC Information go up and down completely randomly.
Pair Corralation between Shenzhen MTC and ZJBC Information
Assuming the 90 days trading horizon Shenzhen MTC Co is expected to under-perform the ZJBC Information. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen MTC Co is 1.19 times less risky than ZJBC Information. The stock trades about -0.11 of its potential returns per unit of risk. The ZJBC Information Technology is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 246.00 in ZJBC Information Technology on November 3, 2024 and sell it today you would lose (12.00) from holding ZJBC Information Technology or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MTC Co vs. ZJBC Information Technology
Performance |
| Timeline |
| Shenzhen MTC |
| ZJBC Information Tec |
Shenzhen MTC and ZJBC Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and ZJBC Information
The main advantage of trading using opposite Shenzhen MTC and ZJBC Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC position performs unexpectedly, ZJBC Information 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 ZJBC Information will offset losses from the drop in ZJBC Information's long position.| Shenzhen MTC vs. Industrial Bank Co | Shenzhen MTC vs. Qilu Bank Co | Shenzhen MTC vs. Agricultural Bank of | Shenzhen MTC vs. Jinsanjiang Silicon Material |
| ZJBC Information vs. Shaanxi Meineng Clean | ZJBC Information vs. Sinofibers Technology Co | ZJBC Information vs. JCHX Mining Management | ZJBC Information vs. Kailong High Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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