Correlation Between Zhejiang Kingland and Tengda Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Tengda Construction Group, you can compare the effects of market volatilities on Zhejiang Kingland and Tengda Construction 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 Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Tengda Construction.
Diversification Opportunities for Zhejiang Kingland and Tengda Construction
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Tengda is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction 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 Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Tengda Construction go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Tengda Construction
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 1.17 times more return on investment than Tengda Construction. However, Zhejiang Kingland is 1.17 times more volatile than Tengda Construction Group. It trades about 0.01 of its potential returns per unit of risk. Tengda Construction Group is currently generating about 0.0 per unit of risk. If you would invest 658.00 in Zhejiang Kingland Pipeline on September 12, 2024 and sell it today you would lose (18.00) from holding Zhejiang Kingland Pipeline or give up 2.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Tengda Construction Group
Performance |
Timeline |
Zhejiang Kingland |
Tengda Construction |
Zhejiang Kingland and Tengda Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Kingland and Tengda Construction
The main advantage of trading using opposite Zhejiang Kingland and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction'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 |
Tengda Construction vs. Agricultural Bank of | Tengda Construction vs. Industrial and Commercial | Tengda Construction vs. Bank of China | Tengda Construction vs. PetroChina Co Ltd |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
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 | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |