Correlation Between China Asset and Shenzhen Zhongzhuang
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Asset Management and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on China Asset and Shenzhen Zhongzhuang 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 China Asset with a short position of Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Shenzhen Zhongzhuang.
Diversification Opportunities for China Asset and Shenzhen Zhongzhuang
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shenzhen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang and China Asset 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 China Asset Management are associated (or correlated) with Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of China Asset i.e., China Asset and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between China Asset and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.27 times more return on investment than Shenzhen Zhongzhuang. However, China Asset Management is 3.69 times less risky than Shenzhen Zhongzhuang. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.0 per unit of risk. If you would invest 264.00 in China Asset Management on October 11, 2024 and sell it today you would earn a total of 113.00 from holding China Asset Management or generate 42.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| China Asset Management |
| Shenzhen Zhongzhuang |
China Asset and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Shenzhen Zhongzhuang
The main advantage of trading using opposite China Asset and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| China Asset vs. Jiangsu Phoenix Publishing | China Asset vs. Huaxia Fund Management | China Asset vs. China Mobile Limited | China Asset vs. Heilongjiang Publishing Media |
| Shenzhen Zhongzhuang vs. Nuode Investment Co | Shenzhen Zhongzhuang vs. Chengdu Xingrong Investment | Shenzhen Zhongzhuang vs. China Asset Management | Shenzhen Zhongzhuang vs. Hubei Geoway Investment |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |