Correlation Between Shenzhen Zhongzhuang and Lootom Telcovideo
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Lootom Telcovideo Network, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Lootom Telcovideo.
Diversification Opportunities for Shenzhen Zhongzhuang and Lootom Telcovideo
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Lootom is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Lootom Telcovideo
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to under-perform the Lootom Telcovideo. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Zhongzhuang Construction is 1.24 times less risky than Lootom Telcovideo. The stock trades about -0.47 of its potential returns per unit of risk. The Lootom Telcovideo Network is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 905.00 in Lootom Telcovideo Network on October 13, 2024 and sell it today you would lose (55.00) from holding Lootom Telcovideo Network or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Lootom Telcovideo Network |
Shenzhen Zhongzhuang and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Lootom Telcovideo
The main advantage of trading using opposite Shenzhen Zhongzhuang and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo'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 |
| Lootom Telcovideo vs. Shenzhen Zhongzhuang Construction | Lootom Telcovideo vs. Xiangyu Medical Co | Lootom Telcovideo vs. Innovative Medical Management | Lootom Telcovideo vs. Chison Medical Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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