Correlation Between China State and Zhongtong Guomai
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By analyzing existing cross correlation between China State Construction and Zhongtong Guomai Communication, you can compare the effects of market volatilities on China State and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Zhongtong Guomai.
Diversification Opportunities for China State and Zhongtong Guomai
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Zhongtong is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of China State i.e., China State and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between China State and Zhongtong Guomai
Assuming the 90 days trading horizon China State Construction is expected to generate 0.3 times more return on investment than Zhongtong Guomai. However, China State Construction is 3.34 times less risky than Zhongtong Guomai. It trades about -0.33 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.19 per unit of risk. If you would invest 604.00 in China State Construction on October 28, 2024 and sell it today you would lose (45.00) from holding China State Construction or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| China State Construction |
| Zhongtong Guomai Com |
China State and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Zhongtong Guomai
The main advantage of trading using opposite China State and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai'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 |
| Zhongtong Guomai vs. Shanghai V Test Semiconductor | Zhongtong Guomai vs. StarPower Semiconductor | Zhongtong Guomai vs. Suzhou Oriental Semiconductor | Zhongtong Guomai vs. Thinkon Semiconductor Jinzhou |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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