Correlation Between Shenzhen MTC and Changjiang Jinggong
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By analyzing existing cross correlation between Shenzhen MTC Co and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Shenzhen MTC and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and Changjiang Jinggong.
Diversification Opportunities for Shenzhen MTC and Changjiang Jinggong
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Changjiang is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC Co and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Shenzhen MTC i.e., Shenzhen MTC and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Shenzhen MTC and Changjiang Jinggong
Assuming the 90 days trading horizon Shenzhen MTC Co is expected to generate 1.57 times more return on investment than Changjiang Jinggong. However, Shenzhen MTC is 1.57 times more volatile than Changjiang Jinggong Steel. It trades about 0.14 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about 0.16 per unit of risk. If you would invest 535.00 in Shenzhen MTC Co on November 28, 2024 and sell it today you would earn a total of 20.00 from holding Shenzhen MTC Co or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MTC Co vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Shenzhen MTC |
| Changjiang Jinggong Steel |
Shenzhen MTC and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and Changjiang Jinggong
The main advantage of trading using opposite Shenzhen MTC and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Shenzhen MTC vs. Fiberhome Telecommunication Technologies | Shenzhen MTC vs. Jiangsu Yanghe Brewery | Shenzhen MTC vs. Beijing Yanjing Brewery | Shenzhen MTC vs. China Satellite Communications |
| Changjiang Jinggong vs. Double Medical Technology | Changjiang Jinggong vs. Tinavi Medical Technologies | Changjiang Jinggong vs. Cofoe Medical Technology | Changjiang Jinggong vs. Tsingtao Brewery Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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