Correlation Between Shenzhen Zhongzhuang and Dongjiang Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Dongjiang Environmental Co, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Dongjiang Environmental 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 Dongjiang Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Dongjiang Environmental.
Diversification Opportunities for Shenzhen Zhongzhuang and Dongjiang Environmental
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Dongjiang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Dongjiang Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongjiang Environmental 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 Dongjiang Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongjiang Environmental has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Dongjiang Environmental go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Dongjiang Environmental
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 1.43 times more return on investment than Dongjiang Environmental. However, Shenzhen Zhongzhuang is 1.43 times more volatile than Dongjiang Environmental Co. It trades about 0.49 of its potential returns per unit of risk. Dongjiang Environmental Co is currently generating about 0.0 per unit of risk. If you would invest 325.00 in Shenzhen Zhongzhuang Construction on September 14, 2024 and sell it today you would earn a total of 119.00 from holding Shenzhen Zhongzhuang Construction or generate 36.62% 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. Dongjiang Environmental Co
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Dongjiang Environmental |
Shenzhen Zhongzhuang and Dongjiang Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Dongjiang Environmental
The main advantage of trading using opposite Shenzhen Zhongzhuang and Dongjiang Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Dongjiang Environmental 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 Dongjiang Environmental will offset losses from the drop in Dongjiang Environmental's long position.| Shenzhen Zhongzhuang vs. Ming Yang Smart | Shenzhen Zhongzhuang vs. 159681 | Shenzhen Zhongzhuang vs. 159005 | Shenzhen Zhongzhuang vs. Loctek Ergonomic 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |