Correlation Between Zhejiang Construction and Shenzhen MYS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Construction Investment and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Zhejiang Construction and Shenzhen MYS 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 MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Shenzhen MYS.
Diversification Opportunities for Zhejiang Construction and Shenzhen MYS
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Shenzhen MYS
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Shenzhen MYS. In addition to that, Zhejiang Construction is 1.22 times more volatile than Shenzhen MYS Environmental. It trades about -0.03 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.05 per unit of volatility. If you would invest 262.00 in Shenzhen MYS Environmental on September 2, 2024 and sell it today you would earn a total of 113.00 from holding Shenzhen MYS Environmental or generate 43.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Zhejiang Construction |
| Shenzhen MYS Environ |
Zhejiang Construction and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Shenzhen MYS
The main advantage of trading using opposite Zhejiang Construction and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Zhejiang Construction vs. Hainan Haiqi Transportation | Zhejiang Construction vs. Shaanxi Broadcast TV | Zhejiang Construction vs. Tibet Huayu Mining | Zhejiang Construction vs. Chongqing Road Bridge |
| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |