Correlation Between Shenzhen Zhongzhuang and Jiangxi Hengda
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Jiangxi Hengda.
Diversification Opportunities for Shenzhen Zhongzhuang and Jiangxi Hengda
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Jiangxi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Jiangxi Hengda
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to under-perform the Jiangxi Hengda. In addition to that, Shenzhen Zhongzhuang is 1.62 times more volatile than Jiangxi Hengda Hi Tech. It trades about -0.04 of its total potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.06 per unit of volatility. If you would invest 529.00 in Jiangxi Hengda Hi Tech on December 10, 2024 and sell it today you would earn a total of 11.00 from holding Jiangxi Hengda Hi Tech or generate 2.08% 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. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Jiangxi Hengda Hi |
Shenzhen Zhongzhuang and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Jiangxi Hengda
The main advantage of trading using opposite Shenzhen Zhongzhuang and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Shenzhen Zhongzhuang vs. Ming Yang Smart | ||
| Shenzhen Zhongzhuang vs. 159681 | ||
| Shenzhen Zhongzhuang vs. 159005 | ||
| Shenzhen Zhongzhuang vs. Loctek Ergonomic Technology |
| Jiangxi Hengda vs. Winner Medical Co | ||
| Jiangxi Hengda vs. Northking Information Technology | ||
| Jiangxi Hengda vs. GKHT Medical Technology | ||
| Jiangxi Hengda vs. APT Medical |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |