Correlation Between Zhongzhu Medical and Shenzhen MYS
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Zhongzhu Medical and Shenzhen MYS 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 Zhongzhu Medical with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Shenzhen MYS.
Diversification Opportunities for Zhongzhu Medical and Shenzhen MYS
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongzhu and Shenzhen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Zhongzhu Medical 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 Zhongzhu Medical Holdings are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Shenzhen MYS
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Shenzhen MYS. But the stock apears to be less risky and, when comparing its historical volatility, Zhongzhu Medical Holdings is 1.25 times less risky than Shenzhen MYS. The stock trades about -0.04 of its potential returns per unit of risk. The Shenzhen MYS Environmental is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 255.00 in Shenzhen MYS Environmental on October 20, 2024 and sell it today you would earn a total of 83.00 from holding Shenzhen MYS Environmental or generate 32.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Shenzhen MYS Environ |
Zhongzhu Medical and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Shenzhen MYS
The main advantage of trading using opposite Zhongzhu Medical and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Zhongzhu Medical vs. Mengtian Home Group | Zhongzhu Medical vs. Zoy Home Furnishing | Zhongzhu Medical vs. Eastroc Beverage Group | Zhongzhu Medical vs. Qumei Furniture Group |
| Shenzhen MYS vs. Bank of Communications | Shenzhen MYS vs. Shenzhen Noposion Agrochemicals | Shenzhen MYS vs. Shandong Polymer Biochemicals | Shenzhen MYS vs. Miracll Chemicals Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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