Correlation Between Shenzhen Zhongzhuang and Financial Street
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Financial Street Holdings, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Financial Street 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 Shenzhen Zhongzhuang with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Financial Street.
Diversification Opportunities for Shenzhen Zhongzhuang and Financial Street
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Financial is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang Construction are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Financial Street go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Financial Street
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 1.2 times more return on investment than Financial Street. However, Shenzhen Zhongzhuang is 1.2 times more volatile than Financial Street Holdings. It trades about 0.0 of its potential returns per unit of risk. Financial Street Holdings is currently generating about -0.03 per unit of risk. If you would invest 502.00 in Shenzhen Zhongzhuang Construction on October 31, 2024 and sell it today you would lose (122.00) from holding Shenzhen Zhongzhuang Construction or give up 24.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Financial Street Holdings
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Financial Street Holdings |
Shenzhen Zhongzhuang and Financial Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Financial Street
The main advantage of trading using opposite Shenzhen Zhongzhuang and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.| Shenzhen Zhongzhuang vs. Wuhan Yangtze Communication | Shenzhen Zhongzhuang vs. Bank of Communications | Shenzhen Zhongzhuang vs. Tianjin Hi Tech Development | Shenzhen Zhongzhuang vs. Beijing Seeyon Internet |
| Financial Street vs. Guangzhou Dongfang Hotel | Financial Street vs. CICT Mobile Communication | Financial Street vs. State Grid InformationCommunication | Financial Street vs. Porton Fine Chemicals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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