Correlation Between Cinda Securities and Shenzhen Worldunion
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By analyzing existing cross correlation between Cinda Securities Co and Shenzhen Worldunion Properties, you can compare the effects of market volatilities on Cinda Securities and Shenzhen Worldunion 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 Worldunion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Shenzhen Worldunion.
Diversification Opportunities for Cinda Securities and Shenzhen Worldunion
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Shenzhen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Shenzhen Worldunion Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Worldunion 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 Worldunion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Worldunion has no effect on the direction of Cinda Securities i.e., Cinda Securities and Shenzhen Worldunion go up and down completely randomly.
Pair Corralation between Cinda Securities and Shenzhen Worldunion
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Shenzhen Worldunion. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.72 times less risky than Shenzhen Worldunion. The stock trades about -0.01 of its potential returns per unit of risk. The Shenzhen Worldunion Properties is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 254.00 in Shenzhen Worldunion Properties on August 31, 2024 and sell it today you would earn a total of 61.00 from holding Shenzhen Worldunion Properties or generate 24.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Shenzhen Worldunion Properties
Performance |
| Timeline |
| Cinda Securities |
| Shenzhen Worldunion |
Cinda Securities and Shenzhen Worldunion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Shenzhen Worldunion
The main advantage of trading using opposite Cinda Securities and Shenzhen Worldunion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Shenzhen Worldunion 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 Worldunion will offset losses from the drop in Shenzhen Worldunion's long position.| Cinda Securities vs. Agricultural Bank of | Cinda Securities vs. Hangzhou Pinming Software | Cinda Securities vs. Shandong Mining Machinery | Cinda Securities vs. GuoChuang Software Co |
| Shenzhen Worldunion vs. Western Metal Materials | Shenzhen Worldunion vs. Xiangyu Medical Co | Shenzhen Worldunion vs. Guangdong Jingyi Metal | Shenzhen Worldunion vs. Beijing HuaYuanYiTong Thermal |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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