Correlation Between Dazhong Transportation and Zhuhai Port
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By analyzing existing cross correlation between Dazhong Transportation Group and Zhuhai Port Co, you can compare the effects of market volatilities on Dazhong Transportation and Zhuhai Port 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 Dazhong Transportation with a short position of Zhuhai Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Zhuhai Port.
Diversification Opportunities for Dazhong Transportation and Zhuhai Port
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dazhong and Zhuhai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Zhuhai Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Port and Dazhong Transportation 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 Dazhong Transportation Group are associated (or correlated) with Zhuhai Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Port has no effect on the direction of Dazhong Transportation i.e., Dazhong Transportation and Zhuhai Port go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Zhuhai Port
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 1.87 times more return on investment than Zhuhai Port. However, Dazhong Transportation is 1.87 times more volatile than Zhuhai Port Co. It trades about 0.03 of its potential returns per unit of risk. Zhuhai Port Co is currently generating about 0.01 per unit of risk. If you would invest 22.00 in Dazhong Transportation Group on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Dazhong Transportation Group or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Zhuhai Port Co
Performance |
| Timeline |
| Dazhong Transportation |
| Zhuhai Port |
Dazhong Transportation and Zhuhai Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Zhuhai Port
The main advantage of trading using opposite Dazhong Transportation and Zhuhai Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation position performs unexpectedly, Zhuhai Port 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 Zhuhai Port will offset losses from the drop in Zhuhai Port's long position.| Dazhong Transportation vs. Cultural Investment Holdings | Dazhong Transportation vs. Gome Telecom Equipment | Dazhong Transportation vs. Bus Online Co | Dazhong Transportation vs. Holitech Technology Co |
| Zhuhai Port vs. Road Environment Technology | Zhuhai Port vs. Xinhua Winshare Publishing | Zhuhai Port vs. Dazhong Transportation Group | Zhuhai Port vs. Shaanxi Broadcast TV |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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