Correlation Between Zhongtong Guomai and Shenzhen Coship
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Zhongtong Guomai and Shenzhen Coship 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 Zhongtong Guomai with a short position of Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Shenzhen Coship.
Diversification Opportunities for Zhongtong Guomai and Shenzhen Coship
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhongtong and Shenzhen is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Shenzhen Coship
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Shenzhen Coship. In addition to that, Zhongtong Guomai is 1.76 times more volatile than Shenzhen Coship Electronics. It trades about -0.22 of its total potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about 0.13 per unit of volatility. If you would invest 615.00 in Shenzhen Coship Electronics on October 14, 2024 and sell it today you would earn a total of 62.00 from holding Shenzhen Coship Electronics or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Shenzhen Coship Elec |
Zhongtong Guomai and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Shenzhen Coship
The main advantage of trading using opposite Zhongtong Guomai and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Shenzhen Coship 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 Coship will offset losses from the drop in Shenzhen Coship's long position.| Zhongtong Guomai vs. Zhejiang Publishing Media | Zhongtong Guomai vs. COL Digital Publishing | Zhongtong Guomai vs. Xinhua Winshare Publishing | Zhongtong Guomai vs. Guangzhou KingTeller Technology |
| Shenzhen Coship vs. Lontium Semiconductor Corp | Shenzhen Coship vs. Southchip Semiconductor Technology | Shenzhen Coship vs. Nanxing Furniture Machinery | Shenzhen Coship vs. Union Semiconductor 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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