Correlation Between Zhejiang Construction and Shenzhen Centralcon
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By analyzing existing cross correlation between Zhejiang Construction Investment and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Zhejiang Construction and Shenzhen Centralcon 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 Construction with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Shenzhen Centralcon.
Diversification Opportunities for Zhejiang Construction and Shenzhen Centralcon
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Shenzhen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Zhejiang Construction 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 Construction Investment are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Shenzhen Centralcon
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to generate 0.82 times more return on investment than Shenzhen Centralcon. However, Zhejiang Construction Investment is 1.22 times less risky than Shenzhen Centralcon. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.02 per unit of risk. If you would invest 1,009 in Zhejiang Construction Investment on September 14, 2024 and sell it today you would earn a total of 50.00 from holding Zhejiang Construction Investment or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Zhejiang Construction |
| Shenzhen Centralcon |
Zhejiang Construction and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Shenzhen Centralcon
The main advantage of trading using opposite Zhejiang Construction and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Zhejiang Construction vs. Sinomach General Machinery | Zhejiang Construction vs. Qijing Machinery | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Panda Financial Holding |
| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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