Correlation Between Shenzhen Changfang and Greattown Holdings
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By analyzing existing cross correlation between Shenzhen Changfang Light and Greattown Holdings Ltd, you can compare the effects of market volatilities on Shenzhen Changfang and Greattown Holdings 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 Changfang with a short position of Greattown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Changfang and Greattown Holdings.
Diversification Opportunities for Shenzhen Changfang and Greattown Holdings
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Greattown is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Changfang Light and Greattown Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greattown Holdings and Shenzhen Changfang 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 Changfang Light are associated (or correlated) with Greattown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greattown Holdings has no effect on the direction of Shenzhen Changfang i.e., Shenzhen Changfang and Greattown Holdings go up and down completely randomly.
Pair Corralation between Shenzhen Changfang and Greattown Holdings
Assuming the 90 days trading horizon Shenzhen Changfang is expected to generate 1.27 times less return on investment than Greattown Holdings. In addition to that, Shenzhen Changfang is 1.13 times more volatile than Greattown Holdings Ltd. It trades about 0.04 of its total potential returns per unit of risk. Greattown Holdings Ltd is currently generating about 0.06 per unit of volatility. If you would invest 303.00 in Greattown Holdings Ltd on September 12, 2024 and sell it today you would earn a total of 113.00 from holding Greattown Holdings Ltd or generate 37.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Changfang Light vs. Greattown Holdings Ltd
Performance |
| Timeline |
| Shenzhen Changfang Light |
| Greattown Holdings |
Shenzhen Changfang and Greattown Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Changfang and Greattown Holdings
The main advantage of trading using opposite Shenzhen Changfang and Greattown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Changfang position performs unexpectedly, Greattown Holdings 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 Greattown Holdings will offset losses from the drop in Greattown Holdings' long position.| Shenzhen Changfang vs. Agricultural Bank of | Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. Bank of China | Shenzhen Changfang vs. PetroChina Co Ltd |
| Greattown Holdings vs. Offshore Oil Engineering | Greattown Holdings vs. Jiugui Liquor Co | Greattown Holdings vs. Chahua Modern Housewares | Greattown Holdings vs. Dymatic Chemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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