Correlation Between Zhongtong Guomai and Shenzhen Hifuture
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Zhongtong Guomai and Shenzhen Hifuture 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 Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Shenzhen Hifuture.
Diversification Opportunities for Zhongtong Guomai and Shenzhen Hifuture
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Shenzhen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Shenzhen Hifuture
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Shenzhen Hifuture. In addition to that, Zhongtong Guomai is 2.19 times more volatile than Shenzhen Hifuture Electric. It trades about -0.22 of its total potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about -0.35 per unit of volatility. If you would invest 329.00 in Shenzhen Hifuture Electric on October 14, 2024 and sell it today you would lose (74.00) from holding Shenzhen Hifuture Electric or give up 22.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Shenzhen Hifuture |
Zhongtong Guomai and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Shenzhen Hifuture
The main advantage of trading using opposite Zhongtong Guomai and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Shenzhen Hifuture 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 Hifuture will offset losses from the drop in Shenzhen Hifuture'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 Hifuture vs. East Money Information | Shenzhen Hifuture vs. Dawning Information Industry | Shenzhen Hifuture vs. Yingde Greatchem Chemicals | Shenzhen Hifuture 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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