Correlation Between Shanghai Zhangjiang and 516220
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By analyzing existing cross correlation between Shanghai Zhangjiang Hi Tech and 516220, you can compare the effects of market volatilities on Shanghai Zhangjiang and 516220 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 Zhangjiang with a short position of 516220. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Zhangjiang and 516220.
Diversification Opportunities for Shanghai Zhangjiang and 516220
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and 516220 is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Zhangjiang Hi Tech and 516220 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 516220 and Shanghai Zhangjiang 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 Zhangjiang Hi Tech are associated (or correlated) with 516220. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 516220 has no effect on the direction of Shanghai Zhangjiang i.e., Shanghai Zhangjiang and 516220 go up and down completely randomly.
Pair Corralation between Shanghai Zhangjiang and 516220
Assuming the 90 days trading horizon Shanghai Zhangjiang Hi Tech is expected to generate 3.6 times more return on investment than 516220. However, Shanghai Zhangjiang is 3.6 times more volatile than 516220. It trades about 0.07 of its potential returns per unit of risk. 516220 is currently generating about -0.04 per unit of risk. If you would invest 2,657 in Shanghai Zhangjiang Hi Tech on August 29, 2024 and sell it today you would earn a total of 145.00 from holding Shanghai Zhangjiang Hi Tech or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Zhangjiang Hi Tech vs. 516220
Performance |
| Timeline |
| Shanghai Zhangjiang |
| 516220 |
Shanghai Zhangjiang and 516220 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Zhangjiang and 516220
The main advantage of trading using opposite Shanghai Zhangjiang and 516220 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Zhangjiang position performs unexpectedly, 516220 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 516220 will offset losses from the drop in 516220's long position.| Shanghai Zhangjiang vs. Industrial and Commercial | Shanghai Zhangjiang vs. China Construction Bank | Shanghai Zhangjiang vs. Bank of China | Shanghai Zhangjiang vs. Agricultural Bank of |
| 516220 vs. Shenzhen MTC Co | 516220 vs. Ming Yang Smart | 516220 vs. Changzhou Almaden Co | 516220 vs. 159005 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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