Correlation Between CCB Principal and Shenzhen MTC
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By analyzing existing cross correlation between CCB Principal SSE and Shenzhen MTC Co, you can compare the effects of market volatilities on CCB Principal and Shenzhen MTC 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 CCB Principal with a short position of Shenzhen MTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCB Principal and Shenzhen MTC.
Diversification Opportunities for CCB Principal and Shenzhen MTC
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CCB and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CCB Principal SSE and Shenzhen MTC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MTC and CCB Principal 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 CCB Principal SSE are associated (or correlated) with Shenzhen MTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MTC has no effect on the direction of CCB Principal i.e., CCB Principal and Shenzhen MTC go up and down completely randomly.
Pair Corralation between CCB Principal and Shenzhen MTC
Assuming the 90 days trading horizon CCB Principal SSE is expected to generate 0.51 times more return on investment than Shenzhen MTC. However, CCB Principal SSE is 1.96 times less risky than Shenzhen MTC. It trades about -0.14 of its potential returns per unit of risk. Shenzhen MTC Co is currently generating about -0.13 per unit of risk. If you would invest 250.00 in CCB Principal SSE on August 27, 2024 and sell it today you would lose (9.00) from holding CCB Principal SSE or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCB Principal SSE vs. Shenzhen MTC Co
Performance |
| Timeline |
| CCB Principal SSE |
| Shenzhen MTC |
CCB Principal and Shenzhen MTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCB Principal and Shenzhen MTC
The main advantage of trading using opposite CCB Principal and Shenzhen MTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCB Principal position performs unexpectedly, Shenzhen MTC 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 MTC will offset losses from the drop in Shenzhen MTC's long position.| CCB Principal vs. Shenzhen MTC Co | CCB Principal vs. Ming Yang Smart | CCB Principal vs. Changzhou Almaden Co | CCB Principal vs. 159005 |
| Shenzhen MTC vs. Eastern Air Logistics | Shenzhen MTC vs. Humanwell Healthcare Group | Shenzhen MTC vs. Shanghai Rongtai Health | Shenzhen MTC vs. De Rucci Healthy |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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