Correlation Between Zhongtong Guomai and Guangdong Shenglu
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Zhongtong Guomai and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Guangdong Shenglu.
Diversification Opportunities for Zhongtong Guomai and Guangdong Shenglu
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongtong and Guangdong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Guangdong Shenglu
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.07 times more return on investment than Guangdong Shenglu. However, Zhongtong Guomai is 1.07 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.03 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.01 per unit of risk. If you would invest 1,019 in Zhongtong Guomai Communication on August 26, 2024 and sell it today you would earn a total of 221.00 from holding Zhongtong Guomai Communication or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Guangdong Shenglu |
Zhongtong Guomai and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Guangdong Shenglu
The main advantage of trading using opposite Zhongtong Guomai and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Zhongtong Guomai vs. Cultural Investment Holdings | Zhongtong Guomai vs. Gome Telecom Equipment | Zhongtong Guomai vs. Bus Online Co | Zhongtong Guomai vs. Holitech Technology Co |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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