Correlation Between Shenzhen Transsion and Central China
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and Central China Land, you can compare the effects of market volatilities on Shenzhen Transsion and Central China 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 Shenzhen Transsion with a short position of Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and Central China.
Diversification Opportunities for Shenzhen Transsion and Central China
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Central is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land and Shenzhen Transsion 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 Shenzhen Transsion Holdings are associated (or correlated) with Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Shenzhen Transsion i.e., Shenzhen Transsion and Central China go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and Central China
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to generate 1.13 times more return on investment than Central China. However, Shenzhen Transsion is 1.13 times more volatile than Central China Land. It trades about -0.09 of its potential returns per unit of risk. Central China Land is currently generating about -0.14 per unit of risk. If you would invest 8,953 in Shenzhen Transsion Holdings on August 29, 2024 and sell it today you would lose (535.00) from holding Shenzhen Transsion Holdings or give up 5.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. Central China Land
Performance |
| Timeline |
| Shenzhen Transsion |
| Central China Land |
Shenzhen Transsion and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and Central China
The main advantage of trading using opposite Shenzhen Transsion and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Shenzhen Transsion vs. Keeson Technology Corp | Shenzhen Transsion vs. Holitech Technology Co | Shenzhen Transsion vs. Qingdao NovelBeam Technology | Shenzhen Transsion vs. Ye Chiu Metal |
| Central China vs. Industrial and Commercial | Central China vs. Agricultural Bank of | Central China vs. China Construction Bank | Central China vs. Bank of China |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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