Correlation Between Zhejiang Kingland and Guangdong Shenglu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Zhejiang Kingland and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Guangdong Shenglu.
Diversification Opportunities for Zhejiang Kingland and Guangdong Shenglu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Guangdong Shenglu
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.68 times more return on investment than Guangdong Shenglu. However, Zhejiang Kingland Pipeline is 1.47 times less risky than Guangdong Shenglu. It trades about 0.0 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.03 per unit of risk. If you would invest 637.00 in Zhejiang Kingland Pipeline on October 31, 2024 and sell it today you would lose (54.00) from holding Zhejiang Kingland Pipeline or give up 8.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Zhejiang Kingland |
| Guangdong Shenglu |
Zhejiang Kingland and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Guangdong Shenglu
The main advantage of trading using opposite Zhejiang Kingland and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Zhejiang Kingland vs. China Greatwall Computer | Zhejiang Kingland vs. Runjian Communication Co | Zhejiang Kingland vs. Beijing Seeyon Internet | Zhejiang Kingland vs. Sichuan Jinshi Technology |
| Guangdong Shenglu vs. Olympic Circuit Technology | Guangdong Shenglu vs. Eyebright Medical Technology | Guangdong Shenglu vs. Shanghai Yaoji Playing | Guangdong Shenglu vs. Linewell Software 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |