Correlation Between Shaanxi Construction and Chenzhou Jingui
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shaanxi Construction Machinery and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Shaanxi Construction and Chenzhou Jingui 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 Shaanxi Construction with a short position of Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Construction and Chenzhou Jingui.
Diversification Opportunities for Shaanxi Construction and Chenzhou Jingui
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Chenzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Construction Machinery and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver and Shaanxi Construction 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 Shaanxi Construction Machinery are associated (or correlated) with Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Shaanxi Construction i.e., Shaanxi Construction and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Shaanxi Construction and Chenzhou Jingui
Assuming the 90 days trading horizon Shaanxi Construction Machinery is expected to under-perform the Chenzhou Jingui. In addition to that, Shaanxi Construction is 1.7 times more volatile than Chenzhou Jingui Silver. It trades about -0.49 of its total potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about -0.34 per unit of volatility. If you would invest 390.00 in Chenzhou Jingui Silver on October 16, 2024 and sell it today you would lose (47.00) from holding Chenzhou Jingui Silver or give up 12.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Construction Machinery vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| Shaanxi Construction |
| Chenzhou Jingui Silver |
Shaanxi Construction and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Construction and Chenzhou Jingui
The main advantage of trading using opposite Shaanxi Construction and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Construction position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Shaanxi Construction vs. Zhengzhou Coal Mining | Shaanxi Construction vs. Guangzhou Restaurants Group | Shaanxi Construction vs. Shuhua Sports Co | Shaanxi Construction vs. Lander Sports Development |
| Chenzhou Jingui vs. Guangdong Qunxing Toys | Chenzhou Jingui vs. Lecron Energy Saving | Chenzhou Jingui vs. Unisplendour Corp | Chenzhou Jingui vs. Ping An Insurance |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |