Correlation Between Zhongtong Guomai and Shanghai Action
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Shanghai Action Education, you can compare the effects of market volatilities on Zhongtong Guomai and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Shanghai Action.
Diversification Opportunities for Zhongtong Guomai and Shanghai Action
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhongtong and Shanghai is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Shanghai Action go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Shanghai Action
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 2.13 times less return on investment than Shanghai Action. In addition to that, Zhongtong Guomai is 1.16 times more volatile than Shanghai Action Education. It trades about 0.02 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about 0.04 per unit of volatility. If you would invest 2,652 in Shanghai Action Education on September 4, 2024 and sell it today you would earn a total of 965.00 from holding Shanghai Action Education or generate 36.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Shanghai Action Education
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Shanghai Action Education |
Zhongtong Guomai and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Shanghai Action
The main advantage of trading using opposite Zhongtong Guomai and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Zhongtong Guomai vs. Wuhan Xianglong Power | Zhongtong Guomai vs. Yuanjie Semiconductor Technology | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Yunnan Bowin Technology |
| Shanghai Action vs. Ming Yang Smart | Shanghai Action vs. 159681 | Shanghai Action vs. 159005 | Shanghai Action vs. 516220 |
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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