Correlation Between Shanghai Jinfeng and ZTE Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Jinfeng Wine and ZTE Corp, you can compare the effects of market volatilities on Shanghai Jinfeng and ZTE Corp 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 Shanghai Jinfeng with a short position of ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and ZTE Corp.
Diversification Opportunities for Shanghai Jinfeng and ZTE Corp
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and ZTE is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and ZTE Corp go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and ZTE Corp
Assuming the 90 days trading horizon Shanghai Jinfeng is expected to generate 28.66 times less return on investment than ZTE Corp. In addition to that, Shanghai Jinfeng is 1.03 times more volatile than ZTE Corp. It trades about 0.0 of its total potential returns per unit of risk. ZTE Corp is currently generating about 0.04 per unit of volatility. If you would invest 2,594 in ZTE Corp on September 4, 2024 and sell it today you would earn a total of 566.00 from holding ZTE Corp or generate 21.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. ZTE Corp
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| ZTE Corp |
Shanghai Jinfeng and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and ZTE Corp
The main advantage of trading using opposite Shanghai Jinfeng and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| Shanghai Jinfeng vs. Industrial and Commercial | Shanghai Jinfeng vs. Agricultural Bank of | Shanghai Jinfeng vs. China Construction Bank | Shanghai Jinfeng vs. Bank of China |
| ZTE Corp vs. Industrial and Commercial | ZTE Corp vs. China Construction Bank | ZTE Corp vs. Bank of China | ZTE Corp vs. Agricultural Bank of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |