Correlation Between Zhongtong Guomai and Chongqing Rural
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongtong Guomai Communication and Chongqing Rural Commercial, you can compare the effects of market volatilities on Zhongtong Guomai and Chongqing Rural 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 Chongqing Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Chongqing Rural.
Diversification Opportunities for Zhongtong Guomai and Chongqing Rural
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Chongqing is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Chongqing Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Rural Comm 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 Chongqing Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Rural Comm has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Chongqing Rural go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Chongqing Rural
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.56 times more return on investment than Chongqing Rural. However, Zhongtong Guomai is 1.56 times more volatile than Chongqing Rural Commercial. It trades about 0.23 of its potential returns per unit of risk. Chongqing Rural Commercial is currently generating about 0.13 per unit of risk. If you would invest 698.00 in Zhongtong Guomai Communication on September 12, 2024 and sell it today you would earn a total of 433.00 from holding Zhongtong Guomai Communication or generate 62.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Chongqing Rural Commercial
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Chongqing Rural Comm |
Zhongtong Guomai and Chongqing Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Chongqing Rural
The main advantage of trading using opposite Zhongtong Guomai and Chongqing Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Chongqing Rural 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 Chongqing Rural will offset losses from the drop in Chongqing Rural's long position.| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
| Chongqing Rural vs. Zhengzhou Coal Mining | Chongqing Rural vs. Hainan Mining Co | Chongqing Rural vs. Jinhui Mining Co | Chongqing Rural vs. Easyhome New Retail |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |