Correlation Between Shenzhen Zhongzhuang and Do Fluoride
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Do Fluoride.
Diversification Opportunities for Shenzhen Zhongzhuang and Do Fluoride
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and 002407 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Do Fluoride go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Do Fluoride
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 1.31 times more return on investment than Do Fluoride. However, Shenzhen Zhongzhuang is 1.31 times more volatile than Do Fluoride Chemicals Co. It trades about 0.27 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.02 per unit of risk. If you would invest 181.00 in Shenzhen Zhongzhuang Construction on October 14, 2024 and sell it today you would earn a total of 141.00 from holding Shenzhen Zhongzhuang Construction or generate 77.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Do Fluoride Chemicals |
Shenzhen Zhongzhuang and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Do Fluoride
The main advantage of trading using opposite Shenzhen Zhongzhuang and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Shenzhen Zhongzhuang vs. Tibet Huayu Mining | Shenzhen Zhongzhuang vs. Wuhan Yangtze Communication | Shenzhen Zhongzhuang vs. Sunwave Communications Co | Shenzhen Zhongzhuang vs. Suzhou Industrial Park |
| Do Fluoride vs. Shaanxi Construction Machinery | Do Fluoride vs. Anhui Gujing Distillery | Do Fluoride vs. Bus Online Co | Do Fluoride vs. Shenzhen Zhongzhuang Construction |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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