Correlation Between Shenzhen Zhongzhuang and Hubeiyichang Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Hubeiyichang Transportation.
Diversification Opportunities for Shenzhen Zhongzhuang and Hubeiyichang Transportation
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Hubeiyichang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Hubeiyichang Transportation
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 2.05 times more return on investment than Hubeiyichang Transportation. However, Shenzhen Zhongzhuang is 2.05 times more volatile than Hubeiyichang Transportation Group. It trades about -0.01 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.05 per unit of risk. If you would invest 405.00 in Shenzhen Zhongzhuang Construction on October 26, 2024 and sell it today you would lose (9.00) from holding Shenzhen Zhongzhuang Construction or give up 2.22% 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. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Hubeiyichang Transportation |
Shenzhen Zhongzhuang and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Hubeiyichang Transportation
The main advantage of trading using opposite Shenzhen Zhongzhuang and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation'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 |
| Hubeiyichang Transportation vs. China Life Insurance | Hubeiyichang Transportation vs. Cinda Securities Co | Hubeiyichang Transportation vs. Piotech Inc A | Hubeiyichang Transportation vs. Dongxing Sec Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |