Correlation Between Shenzhen Zhongzhuang and Xinjiang Tianshun
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Xinjiang Tianshun.
Diversification Opportunities for Shenzhen Zhongzhuang and Xinjiang Tianshun
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Xinjiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Xinjiang Tianshun
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 1.28 times more return on investment than Xinjiang Tianshun. However, Shenzhen Zhongzhuang is 1.28 times more volatile than Xinjiang Tianshun Supply. It trades about 0.02 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.02 per unit of risk. If you would invest 443.00 in Shenzhen Zhongzhuang Construction on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Shenzhen Zhongzhuang Construction or generate 0.0% 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. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Xinjiang Tianshun Supply |
Shenzhen Zhongzhuang and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Xinjiang Tianshun
The main advantage of trading using opposite Shenzhen Zhongzhuang and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Shenzhen Zhongzhuang vs. Agricultural Bank of | Shenzhen Zhongzhuang vs. Industrial and Commercial | Shenzhen Zhongzhuang vs. Bank of China | Shenzhen Zhongzhuang vs. PetroChina Co Ltd |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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