Correlation Between Shenzhen MTC and CCB Principal
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By analyzing existing cross correlation between Shenzhen MTC Co and CCB Principal SSE, you can compare the effects of market volatilities on Shenzhen MTC and CCB Principal 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 CCB Principal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and CCB Principal.
Diversification Opportunities for Shenzhen MTC and CCB Principal
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and CCB is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC Co and CCB Principal SSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCB Principal SSE 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 CCB Principal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCB Principal SSE has no effect on the direction of Shenzhen MTC i.e., Shenzhen MTC and CCB Principal go up and down completely randomly.
Pair Corralation between Shenzhen MTC and CCB Principal
Assuming the 90 days trading horizon Shenzhen MTC Co is expected to under-perform the CCB Principal. In addition to that, Shenzhen MTC is 1.62 times more volatile than CCB Principal SSE. It trades about -0.01 of its total potential returns per unit of risk. CCB Principal SSE is currently generating about 0.05 per unit of volatility. If you would invest 215.00 in CCB Principal SSE on August 27, 2024 and sell it today you would earn a total of 26.00 from holding CCB Principal SSE or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MTC Co vs. CCB Principal SSE
Performance |
| Timeline |
| Shenzhen MTC |
| CCB Principal SSE |
Shenzhen MTC and CCB Principal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and CCB Principal
The main advantage of trading using opposite Shenzhen MTC and CCB Principal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC position performs unexpectedly, CCB Principal 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 CCB Principal will offset losses from the drop in CCB Principal's long position.| Shenzhen MTC vs. Eastern Air Logistics | Shenzhen MTC vs. Humanwell Healthcare Group | Shenzhen MTC vs. Shanghai Rongtai Health | Shenzhen MTC vs. De Rucci Healthy |
| CCB Principal vs. Shenzhen MTC Co | CCB Principal vs. Ming Yang Smart | CCB Principal vs. Changzhou Almaden Co | CCB Principal vs. 159005 |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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