Correlation Between Allied Machinery and Shenzhen Centralcon
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By analyzing existing cross correlation between Allied Machinery Co and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Allied Machinery and Shenzhen Centralcon 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 Allied Machinery with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Shenzhen Centralcon.
Diversification Opportunities for Allied Machinery and Shenzhen Centralcon
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allied and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Allied Machinery 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 Allied Machinery Co are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Allied Machinery i.e., Allied Machinery and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Allied Machinery and Shenzhen Centralcon
Assuming the 90 days trading horizon Allied Machinery Co is expected to under-perform the Shenzhen Centralcon. But the stock apears to be less risky and, when comparing its historical volatility, Allied Machinery Co is 1.24 times less risky than Shenzhen Centralcon. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen Centralcon Investment is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 884.00 in Shenzhen Centralcon Investment on September 3, 2024 and sell it today you would lose (344.00) from holding Shenzhen Centralcon Investment or give up 38.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Allied Machinery |
| Shenzhen Centralcon |
Allied Machinery and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Shenzhen Centralcon
The main advantage of trading using opposite Allied Machinery and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Allied Machinery vs. Cultural Investment Holdings | Allied Machinery vs. Gome Telecom Equipment | Allied Machinery vs. Bus Online Co | Allied Machinery vs. Holitech Technology Co |
| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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