Correlation Between China State and Zhongfu Information
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By analyzing existing cross correlation between China State Construction and Zhongfu Information, you can compare the effects of market volatilities on China State and Zhongfu Information 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 Zhongfu Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Zhongfu Information.
Diversification Opportunities for China State and Zhongfu Information
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zhongfu is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Zhongfu Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongfu Information 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 Zhongfu Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongfu Information has no effect on the direction of China State i.e., China State and Zhongfu Information go up and down completely randomly.
Pair Corralation between China State and Zhongfu Information
Assuming the 90 days trading horizon China State Construction is expected to generate 0.43 times more return on investment than Zhongfu Information. However, China State Construction is 2.3 times less risky than Zhongfu Information. It trades about 0.0 of its potential returns per unit of risk. Zhongfu Information is currently generating about -0.02 per unit of risk. If you would invest 591.00 in China State Construction on October 29, 2024 and sell it today you would lose (32.00) from holding China State Construction or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Zhongfu Information
Performance |
| Timeline |
| China State Construction |
| Zhongfu Information |
China State and Zhongfu Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Zhongfu Information
The main advantage of trading using opposite China State and Zhongfu Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Zhongfu Information 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 Zhongfu Information will offset losses from the drop in Zhongfu Information's long position.| China State vs. Panda Dairy Corp | China State vs. Uroica Mining Safety | China State vs. Qingdao Foods Co | China State vs. Kingclean Electric Co |
| Zhongfu Information vs. Shanghai Ziyan Foods | Zhongfu Information vs. Sichuan Fulin Transportation | Zhongfu Information vs. Ligao Foods CoLtd | Zhongfu Information vs. Guilin Seamild Foods |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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