Correlation Between Shenzhen Zhongzhuang and Guangzhou Haige
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Guangzhou Haige Communications, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Guangzhou Haige.
Diversification Opportunities for Shenzhen Zhongzhuang and Guangzhou Haige
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Guangzhou is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Guangzhou Haige
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to under-perform the Guangzhou Haige. In addition to that, Shenzhen Zhongzhuang is 1.62 times more volatile than Guangzhou Haige Communications. It trades about -0.29 of its total potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.33 per unit of volatility. If you would invest 1,197 in Guangzhou Haige Communications on October 20, 2024 and sell it today you would lose (172.00) from holding Guangzhou Haige Communications or give up 14.37% 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. Guangzhou Haige Communications
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Guangzhou Haige Comm |
Shenzhen Zhongzhuang and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Guangzhou Haige
The main advantage of trading using opposite Shenzhen Zhongzhuang and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.| Shenzhen Zhongzhuang vs. Ping An Insurance | Shenzhen Zhongzhuang vs. Qingdao Foods Co | Shenzhen Zhongzhuang vs. Shenzhen Zqgame | Shenzhen Zhongzhuang vs. Sanbo Hospital Management |
| Guangzhou Haige vs. Allied Machinery Co | Guangzhou Haige vs. Haima Automobile Group | Guangzhou Haige vs. Quectel Wireless Solutions | Guangzhou Haige 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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