Correlation Between Dongxing Sec and Shanghai Zhangjiang
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By analyzing existing cross correlation between Dongxing Sec Co and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on Dongxing Sec and Shanghai Zhangjiang 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 Dongxing Sec with a short position of Shanghai Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Shanghai Zhangjiang.
Diversification Opportunities for Dongxing Sec and Shanghai Zhangjiang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Shanghai Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between Dongxing Sec and Shanghai Zhangjiang
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.83 times more return on investment than Shanghai Zhangjiang. However, Dongxing Sec Co is 1.21 times less risky than Shanghai Zhangjiang. It trades about 0.09 of its potential returns per unit of risk. Shanghai Zhangjiang Hi Tech is currently generating about -0.01 per unit of risk. If you would invest 1,027 in Dongxing Sec Co on September 19, 2024 and sell it today you would earn a total of 107.00 from holding Dongxing Sec Co or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| Dongxing Sec |
| Shanghai Zhangjiang |
Dongxing Sec and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Shanghai Zhangjiang
The main advantage of trading using opposite Dongxing Sec and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Shanghai Zhangjiang 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 Shanghai Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| Dongxing Sec vs. Shantou Wanshun Package | Dongxing Sec vs. Jiahe Foods Industry | Dongxing Sec vs. Shenyang Huitian Thermal | Dongxing Sec vs. Hefei Metalforming Mach |
| Shanghai Zhangjiang vs. China Life Insurance | Shanghai Zhangjiang vs. Cinda Securities Co | Shanghai Zhangjiang vs. Piotech Inc A | Shanghai Zhangjiang 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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