Correlation Between Zhongtong Guomai and Shenzhen Topway
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Shenzhen Topway Video, you can compare the effects of market volatilities on Zhongtong Guomai and Shenzhen Topway 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 Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Shenzhen Topway.
Diversification Opportunities for Zhongtong Guomai and Shenzhen Topway
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Shenzhen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Shenzhen Topway
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 0.69 times more return on investment than Shenzhen Topway. However, Zhongtong Guomai Communication is 1.45 times less risky than Shenzhen Topway. It trades about 0.71 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about 0.31 per unit of risk. If you would invest 691.00 in Zhongtong Guomai Communication on November 29, 2024 and sell it today you would earn a total of 209.00 from holding Zhongtong Guomai Communication or generate 30.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Shenzhen Topway Video
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Shenzhen Topway Video |
Zhongtong Guomai and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Shenzhen Topway
The main advantage of trading using opposite Zhongtong Guomai and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Shenzhen Topway 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 Topway will offset losses from the drop in Shenzhen Topway's long position.| Zhongtong Guomai vs. Zhengzhou Coal Mining | Zhongtong Guomai vs. CICT Mobile Communication | Zhongtong Guomai vs. Unisplendour Corp | Zhongtong Guomai vs. Rising Nonferrous Metals |
| Shenzhen Topway vs. Allwin Telecommunication Co | Shenzhen Topway vs. Kuang Chi Technologies | Shenzhen Topway vs. Shanghai Shibei Hi Tech | Shenzhen Topway vs. Hefei Metalforming Mach |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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