Correlation Between Shantou Wanshun and ZTE Corp
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By analyzing existing cross correlation between Shantou Wanshun Package and ZTE Corp, you can compare the effects of market volatilities on Shantou Wanshun and ZTE Corp 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 Shantou Wanshun with a short position of ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and ZTE Corp.
Diversification Opportunities for Shantou Wanshun and ZTE Corp
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shantou and ZTE is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and ZTE Corp go up and down completely randomly.
Pair Corralation between Shantou Wanshun and ZTE Corp
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 1.11 times more return on investment than ZTE Corp. However, Shantou Wanshun is 1.11 times more volatile than ZTE Corp. It trades about -0.06 of its potential returns per unit of risk. ZTE Corp is currently generating about -0.25 per unit of risk. If you would invest 602.00 in Shantou Wanshun Package on September 13, 2024 and sell it today you would lose (20.00) from holding Shantou Wanshun Package or give up 3.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. ZTE Corp
Performance |
| Timeline |
| Shantou Wanshun Package |
| ZTE Corp |
Shantou Wanshun and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and ZTE Corp
The main advantage of trading using opposite Shantou Wanshun and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Wanhua Chemical Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun vs. Shandong Gold Mining |
| ZTE Corp vs. Harbin Air Conditioning | ZTE Corp vs. Southchip Semiconductor Technology | ZTE Corp vs. Spring Airlines Co | ZTE Corp vs. Hua Xia 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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