Correlation Between Shenzhen Zhongzhuang and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and China Railway Materials, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and China Railway.
Diversification Opportunities for Shenzhen Zhongzhuang and China Railway
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and China Railway Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Materials 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Materials has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and China Railway go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and China Railway
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 1.98 times more return on investment than China Railway. However, Shenzhen Zhongzhuang is 1.98 times more volatile than China Railway Materials. It trades about 0.57 of its potential returns per unit of risk. China Railway Materials is currently generating about 0.14 per unit of risk. If you would invest 272.00 in Shenzhen Zhongzhuang Construction on September 5, 2024 and sell it today you would earn a total of 129.00 from holding Shenzhen Zhongzhuang Construction or generate 47.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. China Railway Materials
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| China Railway Materials |
Shenzhen Zhongzhuang and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and China Railway
The main advantage of trading using opposite Shenzhen Zhongzhuang and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Shenzhen Zhongzhuang vs. Central Plains Environment | Shenzhen Zhongzhuang vs. Bengang Steel Plates | Shenzhen Zhongzhuang vs. Ningbo Thermal Power | Shenzhen Zhongzhuang vs. Beijing SPC Environment |
| China Railway vs. Sinosteel Engineering and | China Railway vs. Xiamen Jihong Package | China Railway vs. Youyou Foods Co | China Railway vs. Aofu Environmental Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |