Correlation Between Zhongtong Guomai and Shenzhen Changfang
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Shenzhen Changfang Light, you can compare the effects of market volatilities on Zhongtong Guomai and Shenzhen Changfang 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 Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Shenzhen Changfang.
Diversification Opportunities for Zhongtong Guomai and Shenzhen Changfang
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Shenzhen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Shenzhen Changfang
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Shenzhen Changfang. In addition to that, Zhongtong Guomai is 1.98 times more volatile than Shenzhen Changfang Light. It trades about -0.22 of its total potential returns per unit of risk. Shenzhen Changfang Light is currently generating about -0.05 per unit of volatility. If you would invest 190.00 in Shenzhen Changfang Light on October 14, 2024 and sell it today you would lose (10.00) from holding Shenzhen Changfang Light or give up 5.26% 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 Changfang Light
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Shenzhen Changfang Light |
Zhongtong Guomai and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Shenzhen Changfang
The main advantage of trading using opposite Zhongtong Guomai and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Shenzhen Changfang 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 Changfang will offset losses from the drop in Shenzhen Changfang'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 Changfang vs. Humanwell Healthcare Group | Shenzhen Changfang vs. Lotus Health Group | Shenzhen Changfang vs. Healthcare Co | Shenzhen Changfang vs. Ligao Foods CoLtd |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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