Correlation Between Zhongsheng Group and USS
Can any of the company-specific risk be diversified away by investing in both Zhongsheng Group and USS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zhongsheng Group and USS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhongsheng Group Holdings and USS Co, you can compare the effects of market volatilities on Zhongsheng Group and USS 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 Zhongsheng Group with a short position of USS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongsheng Group and USS.
Diversification Opportunities for Zhongsheng Group and USS
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongsheng and USS is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Zhongsheng Group Holdings and USS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USS Co and Zhongsheng Group 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 Zhongsheng Group Holdings are associated (or correlated) with USS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USS Co has no effect on the direction of Zhongsheng Group i.e., Zhongsheng Group and USS go up and down completely randomly.
Pair Corralation between Zhongsheng Group and USS
Assuming the 90 days horizon Zhongsheng Group Holdings is expected to generate 5.69 times more return on investment than USS. However, Zhongsheng Group is 5.69 times more volatile than USS Co. It trades about 0.09 of its potential returns per unit of risk. USS Co is currently generating about 0.09 per unit of risk. If you would invest 83.00 in Zhongsheng Group Holdings on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Zhongsheng Group Holdings or generate 120.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongsheng Group Holdings vs. USS Co
Performance |
| Timeline |
| Zhongsheng Group Holdings |
| USS Co |
Zhongsheng Group and USS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongsheng Group and USS
The main advantage of trading using opposite Zhongsheng Group and USS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongsheng Group position performs unexpectedly, USS 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 USS will offset losses from the drop in USS's long position.| Zhongsheng Group vs. LION ONE METALS | Zhongsheng Group vs. Chuangs China Investments | Zhongsheng Group vs. Strategic Investments AS | Zhongsheng Group vs. Lion One Metals |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |