Correlation Between Shenzhen Zhongzhuang and Jinhui Liquor
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Jinhui Liquor Co, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Jinhui Liquor.
Diversification Opportunities for Shenzhen Zhongzhuang and Jinhui Liquor
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Jinhui is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Jinhui Liquor
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to generate 1.44 times more return on investment than Jinhui Liquor. However, Shenzhen Zhongzhuang is 1.44 times more volatile than Jinhui Liquor Co. It trades about -0.01 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.02 per unit of risk. If you would invest 468.00 in Shenzhen Zhongzhuang Construction on October 16, 2024 and sell it today you would lose (150.00) from holding Shenzhen Zhongzhuang Construction or give up 32.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Jinhui Liquor Co
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Jinhui Liquor |
Shenzhen Zhongzhuang and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Jinhui Liquor
The main advantage of trading using opposite Shenzhen Zhongzhuang and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.| Shenzhen Zhongzhuang vs. Jiangxi Hengda Hi Tech | Shenzhen Zhongzhuang vs. Kuang Chi Technologies | Shenzhen Zhongzhuang vs. Beijing Sanyuan Foods | Shenzhen Zhongzhuang vs. Guangdong Wens Foodstuff |
| Jinhui Liquor vs. Weichai Heavy Machinery | Jinhui Liquor vs. Shuhua Sports Co | Jinhui Liquor vs. Zhejiang Yinlun Machinery | Jinhui Liquor vs. Shenzhen Zhongzhuang Construction |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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