Correlation Between Zhejiang Kingland and Shenzhen Shenbao
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Shenzhen Shenbao Industrial, you can compare the effects of market volatilities on Zhejiang Kingland and Shenzhen Shenbao 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 Zhejiang Kingland with a short position of Shenzhen Shenbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Shenzhen Shenbao.
Diversification Opportunities for Zhejiang Kingland and Shenzhen Shenbao
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Shenzhen Shenbao Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Shenbao Ind and Zhejiang Kingland 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 Zhejiang Kingland Pipeline are associated (or correlated) with Shenzhen Shenbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Shenbao Ind has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Shenzhen Shenbao go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Shenzhen Shenbao
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the Shenzhen Shenbao. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Kingland Pipeline is 1.09 times less risky than Shenzhen Shenbao. The stock trades about -0.04 of its potential returns per unit of risk. The Shenzhen Shenbao Industrial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Shenzhen Shenbao Industrial on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Shenzhen Shenbao Industrial or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Shenzhen Shenbao Industrial
Performance |
| Timeline |
| Zhejiang Kingland |
| Shenzhen Shenbao Ind |
Zhejiang Kingland and Shenzhen Shenbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Shenzhen Shenbao
The main advantage of trading using opposite Zhejiang Kingland and Shenzhen Shenbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Shenzhen Shenbao 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 Shenzhen Shenbao will offset losses from the drop in Shenzhen Shenbao's long position.| Zhejiang Kingland vs. Gansu Jiu Steel | Zhejiang Kingland vs. Shandong Mining Machinery | Zhejiang Kingland vs. Aba Chemicals Corp | Zhejiang Kingland vs. BlueFocus Communication Group |
| Shenzhen Shenbao vs. Impulse Qingdao Health | Shenzhen Shenbao vs. HanS Laser Tech | Shenzhen Shenbao vs. Shuhua Sports Co | Shenzhen Shenbao vs. Humanwell Healthcare Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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