Correlation Between Zhonghang Electronic and Chongqing Shunbo
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By analyzing existing cross correlation between Zhonghang Electronic Measuring and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Zhonghang Electronic and Chongqing Shunbo 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 Zhonghang Electronic with a short position of Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghang Electronic and Chongqing Shunbo.
Diversification Opportunities for Zhonghang Electronic and Chongqing Shunbo
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhonghang and Chongqing is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghang Electronic Measuring and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum and Zhonghang Electronic 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 Zhonghang Electronic Measuring are associated (or correlated) with Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Zhonghang Electronic i.e., Zhonghang Electronic and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Zhonghang Electronic and Chongqing Shunbo
Assuming the 90 days trading horizon Zhonghang Electronic Measuring is expected to generate 1.56 times more return on investment than Chongqing Shunbo. However, Zhonghang Electronic is 1.56 times more volatile than Chongqing Shunbo Aluminum. It trades about 0.09 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about 0.01 per unit of risk. If you would invest 4,049 in Zhonghang Electronic Measuring on October 12, 2024 and sell it today you would earn a total of 2,757 from holding Zhonghang Electronic Measuring or generate 68.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghang Electronic Measuring vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Zhonghang Electronic |
| Chongqing Shunbo Aluminum |
Zhonghang Electronic and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghang Electronic and Chongqing Shunbo
The main advantage of trading using opposite Zhonghang Electronic and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghang Electronic position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| Zhonghang Electronic vs. Jiaozuo Wanfang Aluminum | Zhonghang Electronic vs. Zijin Mining Group | Zhonghang Electronic vs. Jiangsu Yanghe Brewery | Zhonghang Electronic vs. Chongqing Shunbo Aluminum |
| Chongqing Shunbo vs. Nanning Chemical Industry | Chongqing Shunbo vs. Ningxia Younglight Chemicals | Chongqing Shunbo vs. Harbin Hatou Investment | Chongqing Shunbo vs. Postal Savings 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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