Correlation Between Shenzhen Zhongzhuang and Kunwu Jiuding
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Kunwu Jiuding.
Diversification Opportunities for Shenzhen Zhongzhuang and Kunwu Jiuding
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Kunwu is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Kunwu Jiuding
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Zhongzhuang Construction is 1.67 times less risky than Kunwu Jiuding. The stock trades about -0.11 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,322 in Kunwu Jiuding Investment on January 23, 2025 and sell it today you would earn a total of 27.00 from holding Kunwu Jiuding Investment or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Kunwu Jiuding Investment |
Shenzhen Zhongzhuang and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Kunwu Jiuding
The main advantage of trading using opposite Shenzhen Zhongzhuang and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Shenzhen Zhongzhuang vs. Shenzhen Shenbao Industrial | Shenzhen Zhongzhuang vs. Aba Chemicals Corp | Shenzhen Zhongzhuang vs. Shenzhen Noposion Agrochemicals | Shenzhen Zhongzhuang vs. Zijin Mining Group |
| Kunwu Jiuding vs. China Construction Bank | Kunwu Jiuding vs. Bank of China | Kunwu Jiuding vs. Agricultural Bank of | Kunwu Jiuding vs. Industrial and Commercial |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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