Correlation Between Zhejiang Orient and Shantui Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Orient Gene and Shantui Construction Machinery, you can compare the effects of market volatilities on Zhejiang Orient and Shantui Construction 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 Zhejiang Orient with a short position of Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Shantui Construction.
Diversification Opportunities for Zhejiang Orient and Shantui Construction
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Shantui is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction and Zhejiang Orient 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 Zhejiang Orient Gene are associated (or correlated) with Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Zhejiang Orient i.e., Zhejiang Orient and Shantui Construction go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Shantui Construction
Assuming the 90 days trading horizon Zhejiang Orient Gene is expected to under-perform the Shantui Construction. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Orient Gene is 1.07 times less risky than Shantui Construction. The stock trades about -0.07 of its potential returns per unit of risk. The Shantui Construction Machinery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 429.00 in Shantui Construction Machinery on September 3, 2024 and sell it today you would earn a total of 614.00 from holding Shantui Construction Machinery or generate 143.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. Shantui Construction Machinery
Performance |
| Timeline |
| Zhejiang Orient Gene |
| Shantui Construction |
Zhejiang Orient and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and Shantui Construction
The main advantage of trading using opposite Zhejiang Orient and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Zhejiang Orient vs. Gem Year Industrial Co | Zhejiang Orient vs. Bomesc Offshore Engineering | Zhejiang Orient vs. Tibet Huayu Mining | Zhejiang Orient vs. Xinjiang Baodi Mining |
| Shantui Construction vs. Cultural Investment Holdings | Shantui Construction vs. Gome Telecom Equipment | Shantui Construction vs. Bus Online Co | Shantui Construction vs. Holitech Technology Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |