Correlation Between Shenzhen Zhongzhuang and Changchun Faway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Changchun Faway Automobile, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Changchun Faway.
Diversification Opportunities for Shenzhen Zhongzhuang and Changchun Faway
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Changchun is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Changchun Faway go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Changchun Faway
Assuming the 90 days trading horizon Shenzhen Zhongzhuang is expected to generate 1.69 times less return on investment than Changchun Faway. In addition to that, Shenzhen Zhongzhuang is 1.51 times more volatile than Changchun Faway Automobile. It trades about 0.01 of its total potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.02 per unit of volatility. If you would invest 877.00 in Changchun Faway Automobile on August 28, 2024 and sell it today you would earn a total of 91.00 from holding Changchun Faway Automobile or generate 10.38% 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. Changchun Faway Automobile
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Changchun Faway Auto |
Shenzhen Zhongzhuang and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Changchun Faway
The main advantage of trading using opposite Shenzhen Zhongzhuang and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Shenzhen Zhongzhuang vs. Ming Yang Smart | Shenzhen Zhongzhuang vs. 159681 | Shenzhen Zhongzhuang vs. 159005 | Shenzhen Zhongzhuang vs. Loctek Ergonomic Technology |
| Changchun Faway vs. Miracll Chemicals Co | Changchun Faway vs. Guangzhou KingTeller Technology | Changchun Faway vs. Nantong Jiangshan Agrochemical | Changchun Faway vs. Shanghai Jinfeng Wine |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |