Correlation Between Shenzhen MTC and Zhejiang Kingland
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By analyzing existing cross correlation between Shenzhen MTC Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Shenzhen MTC 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 MTC with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and Zhejiang Kingland.
Diversification Opportunities for Shenzhen MTC and Zhejiang Kingland
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC Co 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 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 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 MTC i.e., Shenzhen MTC and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Shenzhen MTC and Zhejiang Kingland
Assuming the 90 days trading horizon Shenzhen MTC is expected to generate 1.01 times less return on investment than Zhejiang Kingland. In addition to that, Shenzhen MTC is 1.17 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.14 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.16 per unit of volatility. If you would invest 516.00 in Zhejiang Kingland Pipeline on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Zhejiang Kingland Pipeline or generate 25.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MTC Co vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Shenzhen MTC |
| Zhejiang Kingland |
Shenzhen MTC and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and Zhejiang Kingland
The main advantage of trading using opposite Shenzhen MTC and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC 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 MTC vs. Guangzhou Seagull Kitchen | Shenzhen MTC vs. Yindu Kitchen Equipment | Shenzhen MTC vs. BTG Hotels Group | Shenzhen MTC vs. China Railway Construction |
| Zhejiang Kingland vs. Shanghai Broadband Technology | Zhejiang Kingland vs. Zhengping RoadBridge Constr | Zhejiang Kingland vs. Dazhong Transportation Group | Zhejiang Kingland vs. Tongyu Communication |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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