Correlation Between Zhejiang Construction and Suzhou Mingzhi
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By analyzing existing cross correlation between Zhejiang Construction Investment and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Zhejiang Construction and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Suzhou Mingzhi.
Diversification Opportunities for Zhejiang Construction and Suzhou Mingzhi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Suzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Suzhou Mingzhi
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to generate 0.99 times more return on investment than Suzhou Mingzhi. However, Zhejiang Construction Investment is 1.01 times less risky than Suzhou Mingzhi. It trades about 0.11 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.08 per unit of risk. If you would invest 933.00 in Zhejiang Construction Investment on August 29, 2024 and sell it today you would earn a total of 139.00 from holding Zhejiang Construction Investment or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.37% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Zhejiang Construction |
| Suzhou Mingzhi Technology |
Zhejiang Construction and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Suzhou Mingzhi
The main advantage of trading using opposite Zhejiang Construction and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Zhejiang Construction vs. Agricultural Bank of | Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. China Construction Bank |
| Suzhou Mingzhi vs. Zhejiang Construction Investment | Suzhou Mingzhi vs. Hunan Tyen Machinery | Suzhou Mingzhi vs. Tieling Newcity Investment | Suzhou Mingzhi vs. Tengda Construction 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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