Correlation Between China Merchants and Zhangjiagang Elegant
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Merchants Bank and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on China Merchants and Zhangjiagang Elegant 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 Merchants with a short position of Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Zhangjiagang Elegant.
Diversification Opportunities for China Merchants and Zhangjiagang Elegant
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Zhangjiagang is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home and China Merchants 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 Merchants Bank are associated (or correlated) with Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of China Merchants i.e., China Merchants and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between China Merchants and Zhangjiagang Elegant
Assuming the 90 days trading horizon China Merchants is expected to generate 1.04 times less return on investment than Zhangjiagang Elegant. But when comparing it to its historical volatility, China Merchants Bank is 2.42 times less risky than Zhangjiagang Elegant. It trades about 0.29 of its potential returns per unit of risk. Zhangjiagang Elegant Home is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Zhangjiagang Elegant Home on November 3, 2024 and sell it today you would earn a total of 48.00 from holding Zhangjiagang Elegant Home or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| China Merchants Bank |
| Zhangjiagang Elegant Home |
China Merchants and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Zhangjiagang Elegant
The main advantage of trading using opposite China Merchants and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| China Merchants vs. Bomesc Offshore Engineering | China Merchants vs. Beijing YanDong MicroElectronic | China Merchants vs. CSSC Offshore Marine | China Merchants vs. Nantong Haixing Electronics |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets |