Correlation Between China State and Henzhen Zhaowei
Specify exactly 2 symbols:
By analyzing existing cross correlation between China State Construction and Henzhen Zhaowei Machinery, you can compare the effects of market volatilities on China State and Henzhen Zhaowei 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 China State with a short position of Henzhen Zhaowei. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Henzhen Zhaowei.
Diversification Opportunities for China State and Henzhen Zhaowei
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Henzhen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Henzhen Zhaowei Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henzhen Zhaowei Machinery and China State 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 China State Construction are associated (or correlated) with Henzhen Zhaowei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henzhen Zhaowei Machinery has no effect on the direction of China State i.e., China State and Henzhen Zhaowei go up and down completely randomly.
Pair Corralation between China State and Henzhen Zhaowei
Assuming the 90 days trading horizon China State is expected to generate 3.52 times less return on investment than Henzhen Zhaowei. But when comparing it to its historical volatility, China State Construction is 2.13 times less risky than Henzhen Zhaowei. It trades about 0.03 of its potential returns per unit of risk. Henzhen Zhaowei Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,914 in Henzhen Zhaowei Machinery on September 1, 2024 and sell it today you would earn a total of 2,496 from holding Henzhen Zhaowei Machinery or generate 50.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Henzhen Zhaowei Machinery
Performance |
| Timeline |
| China State Construction |
| Henzhen Zhaowei Machinery |
China State and Henzhen Zhaowei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Henzhen Zhaowei
The main advantage of trading using opposite China State and Henzhen Zhaowei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Henzhen Zhaowei 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 Henzhen Zhaowei will offset losses from the drop in Henzhen Zhaowei's long position.| China State vs. Hunan Investment Group | China State vs. Huaibei Mining Holdings | China State vs. Metro Investment Development | China State vs. Postal Savings Bank |
| Henzhen Zhaowei vs. Industrial Securities Co | Henzhen Zhaowei vs. Guangdong Jingyi Metal | Henzhen Zhaowei vs. Pengxin International Mining | Henzhen Zhaowei vs. Qinghaihuading Industrial 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |