Correlation Between Cinda Securities and Shenzhen Centralcon
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By analyzing existing cross correlation between Cinda Securities Co and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Cinda Securities and Shenzhen Centralcon 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 Cinda Securities with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Shenzhen Centralcon.
Diversification Opportunities for Cinda Securities and Shenzhen Centralcon
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Cinda Securities i.e., Cinda Securities and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Cinda Securities and Shenzhen Centralcon
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Shenzhen Centralcon. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.19 times less risky than Shenzhen Centralcon. The stock trades about -0.01 of its potential returns per unit of risk. The Shenzhen Centralcon Investment is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 528.00 in Shenzhen Centralcon Investment on September 13, 2024 and sell it today you would earn a total of 59.00 from holding Shenzhen Centralcon Investment or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Cinda Securities |
| Shenzhen Centralcon |
Cinda Securities and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Shenzhen Centralcon
The main advantage of trading using opposite Cinda Securities and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Cinda Securities vs. Chison Medical Technologies | Cinda Securities vs. Eastern Air Logistics | Cinda Securities vs. Hangzhou Gisway Information | Cinda Securities vs. Air China Ltd |
| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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