Correlation Between Shenzhen Zhongzhuang and Tieling Newcity
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Tieling Newcity Investment, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Tieling Newcity.
Diversification Opportunities for Shenzhen Zhongzhuang and Tieling Newcity
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Tieling is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Tieling Newcity go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Tieling Newcity
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to under-perform the Tieling Newcity. In addition to that, Shenzhen Zhongzhuang is 1.62 times more volatile than Tieling Newcity Investment. It trades about -0.08 of its total potential returns per unit of risk. Tieling Newcity Investment is currently generating about -0.03 per unit of volatility. If you would invest 305.00 in Tieling Newcity Investment on October 28, 2024 and sell it today you would lose (7.00) from holding Tieling Newcity Investment or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Tieling Newcity Investment
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Tieling Newcity Inve |
Shenzhen Zhongzhuang and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Tieling Newcity
The main advantage of trading using opposite Shenzhen Zhongzhuang and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Shenzhen Zhongzhuang vs. Industrial and Commercial | Shenzhen Zhongzhuang vs. China Construction Bank | Shenzhen Zhongzhuang vs. Agricultural Bank of | Shenzhen Zhongzhuang vs. Bank of China |
| Tieling Newcity vs. Industrial and Commercial | Tieling Newcity vs. China Construction Bank | Tieling Newcity vs. Bank of China | Tieling Newcity vs. Agricultural Bank of |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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