Correlation Between Shenzhen Zhongzhuang and Shaanxi Broadcast
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Shaanxi Broadcast.
Diversification Opportunities for Shenzhen Zhongzhuang and Shaanxi Broadcast
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Shaanxi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Shaanxi Broadcast
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 1.23 times more return on investment than Shaanxi Broadcast. However, Shenzhen Zhongzhuang is 1.23 times more volatile than Shaanxi Broadcast TV. It trades about 0.46 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about 0.12 per unit of risk. If you would invest 329.00 in Shenzhen Zhongzhuang Construction on September 13, 2024 and sell it today you would earn a total of 115.00 from holding Shenzhen Zhongzhuang Construction or generate 34.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Shaanxi Broadcast |
Shenzhen Zhongzhuang and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Shaanxi Broadcast
The main advantage of trading using opposite Shenzhen Zhongzhuang and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Shenzhen Zhongzhuang vs. Ming Yang Smart | Shenzhen Zhongzhuang vs. 159681 | Shenzhen Zhongzhuang vs. 159005 | Shenzhen Zhongzhuang vs. Loctek Ergonomic Technology |
| Shaanxi Broadcast vs. Lutian Machinery Co | Shaanxi Broadcast vs. PetroChina Co Ltd | Shaanxi Broadcast vs. Bank of China | Shaanxi Broadcast vs. China Citic Bank |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |