Correlation Between Zhongtong Guomai and Lushang Property
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Lushang Property Co, you can compare the effects of market volatilities on Zhongtong Guomai and Lushang Property 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 Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Lushang Property.
Diversification Opportunities for Zhongtong Guomai and Lushang Property
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Lushang is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property 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 Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Lushang Property go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Lushang Property
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.33 times more return on investment than Lushang Property. However, Zhongtong Guomai is 1.33 times more volatile than Lushang Property Co. It trades about 0.06 of its potential returns per unit of risk. Lushang Property Co is currently generating about -0.03 per unit of risk. If you would invest 795.00 in Zhongtong Guomai Communication on September 12, 2024 and sell it today you would earn a total of 350.00 from holding Zhongtong Guomai Communication or generate 44.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Lushang Property Co
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Lushang Property |
Zhongtong Guomai and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Lushang Property
The main advantage of trading using opposite Zhongtong Guomai and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.| Zhongtong Guomai vs. Gansu Jiu Steel | Zhongtong Guomai vs. Shandong Mining Machinery | Zhongtong Guomai vs. Aba Chemicals Corp | Zhongtong Guomai vs. BlueFocus Communication Group |
| Lushang Property vs. Zhongtong Guomai Communication | Lushang Property vs. CSSC Offshore Marine | Lushang Property vs. Hangzhou Gaoxin Rubber | Lushang Property vs. Sichuan Jinshi Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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