Correlation Between Zhejiang Orient and Guangdong Shenglu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Orient Gene and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Zhejiang Orient and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Guangdong Shenglu.
Diversification Opportunities for Zhejiang Orient and Guangdong Shenglu
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Guangdong is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Zhejiang Orient i.e., Zhejiang Orient and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Guangdong Shenglu
Assuming the 90 days trading horizon Zhejiang Orient Gene is expected to generate 0.54 times more return on investment than Guangdong Shenglu. However, Zhejiang Orient Gene is 1.84 times less risky than Guangdong Shenglu. It trades about -0.18 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.22 per unit of risk. If you would invest 3,070 in Zhejiang Orient Gene on October 25, 2024 and sell it today you would lose (210.00) from holding Zhejiang Orient Gene or give up 6.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Zhejiang Orient Gene |
| Guangdong Shenglu |
Zhejiang Orient and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and Guangdong Shenglu
The main advantage of trading using opposite Zhejiang Orient and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Zhejiang Orient vs. Xiamen Bank Co | Zhejiang Orient vs. GRG Banking Equipment | Zhejiang Orient vs. Suzhou Douson Drilling | Zhejiang Orient vs. Industrial Bank Co |
| Guangdong Shenglu vs. Kweichow Moutai Co | Guangdong Shenglu vs. NAURA Technology Group | Guangdong Shenglu vs. APT Medical | Guangdong Shenglu vs. BYD Co Ltd |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |