Correlation Between Huitong Construction and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Huitong Construction Group and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Huitong Construction 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 Huitong Construction with a short position of Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huitong Construction and Shenzhen Zhongzhuang.
Diversification Opportunities for Huitong Construction and Shenzhen Zhongzhuang
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huitong and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Huitong Construction Group and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang and Huitong Construction 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 Huitong Construction Group 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 Huitong Construction i.e., Huitong Construction and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Huitong Construction and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Huitong Construction Group is expected to generate 0.69 times more return on investment than Shenzhen Zhongzhuang. However, Huitong Construction Group is 1.44 times less risky than Shenzhen Zhongzhuang. It trades about 0.22 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.12 per unit of risk. If you would invest 484.00 in Huitong Construction Group on November 29, 2024 and sell it today you would earn a total of 25.00 from holding Huitong Construction Group or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huitong Construction Group vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Huitong Construction |
| Shenzhen Zhongzhuang |
Huitong Construction and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huitong Construction and Shenzhen Zhongzhuang
The main advantage of trading using opposite Huitong Construction and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huitong Construction 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.| Huitong Construction vs. Industrial and Commercial | Huitong Construction vs. China Construction Bank | Huitong Construction vs. Bank of China | Huitong Construction vs. Agricultural Bank of |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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