Correlation Between Industrial and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Industrial and Commercial and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Industrial and Shenzhen Zhongzhuang 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 Industrial with a short position of Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shenzhen Zhongzhuang.
Diversification Opportunities for Industrial and Shenzhen Zhongzhuang
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Shenzhen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang and Industrial 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 Industrial and Commercial are associated (or correlated) with Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Industrial i.e., Industrial and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Industrial and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.33 times more return on investment than Shenzhen Zhongzhuang. However, Industrial and Commercial is 3.05 times less risky than Shenzhen Zhongzhuang. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.02 per unit of risk. If you would invest 477.00 in Industrial and Commercial on September 12, 2024 and sell it today you would earn a total of 165.00 from holding Industrial and Commercial or generate 34.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Industrial and Commercial |
| Shenzhen Zhongzhuang |
Industrial and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shenzhen Zhongzhuang
The main advantage of trading using opposite Industrial and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shenzhen Zhongzhuang 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 Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| Industrial vs. Eastroc Beverage Group | Industrial vs. China Publishing Media | Industrial vs. Inly Media Co | Industrial vs. Beijing Sanyuan Foods |
| Shenzhen Zhongzhuang vs. Agricultural Bank of | Shenzhen Zhongzhuang vs. Industrial and Commercial | Shenzhen Zhongzhuang vs. Bank of China | Shenzhen Zhongzhuang vs. PetroChina Co Ltd |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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