Correlation Between Shenzhen Zhongzhuang and Sichuan Hebang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Sichuan Hebang.
Diversification Opportunities for Shenzhen Zhongzhuang and Sichuan Hebang
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Sichuan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Sichuan Hebang
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 1.67 times more return on investment than Sichuan Hebang. However, Shenzhen Zhongzhuang is 1.67 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.91 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.12 per unit of risk. If you would invest 213.00 in Shenzhen Zhongzhuang Construction on August 28, 2024 and sell it today you would earn a total of 170.00 from holding Shenzhen Zhongzhuang Construction or generate 79.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Sichuan Hebang Biote |
Shenzhen Zhongzhuang and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Sichuan Hebang
The main advantage of trading using opposite Shenzhen Zhongzhuang and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Shenzhen Zhongzhuang vs. Ming Yang Smart | Shenzhen Zhongzhuang vs. 159681 | Shenzhen Zhongzhuang vs. 159005 | Shenzhen Zhongzhuang vs. Loctek Ergonomic Technology |
| Sichuan Hebang vs. Zijin Mining Group | Sichuan Hebang vs. Wanhua Chemical Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Shandong Gold Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |