Correlation Between Dazhong Transportation and Shenzhen
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By analyzing existing cross correlation between Dazhong Transportation Group and Shenzhen AV Display Co, you can compare the effects of market volatilities on Dazhong Transportation and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Shenzhen.
Diversification Opportunities for Dazhong Transportation and Shenzhen
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dazhong and Shenzhen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Dazhong Transportation i.e., Dazhong Transportation and Shenzhen go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Shenzhen
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 0.8 times more return on investment than Shenzhen. However, Dazhong Transportation Group is 1.24 times less risky than Shenzhen. It trades about -0.02 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.03 per unit of risk. If you would invest 23.00 in Dazhong Transportation Group on October 14, 2024 and sell it today you would lose (1.00) from holding Dazhong Transportation Group or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Dazhong Transportation |
| Shenzhen AV Display |
Dazhong Transportation and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Shenzhen
The main advantage of trading using opposite Dazhong Transportation and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's long position.| Dazhong Transportation vs. Youngy Health Co | Dazhong Transportation vs. PKU HealthCare Corp | Dazhong Transportation vs. Mingchen Health Co | Dazhong Transportation vs. Zhejiang Kingland Pipeline |
| Shenzhen vs. Shaanxi Broadcast TV | Shenzhen vs. Road Environment Technology | Shenzhen vs. Dazhong Transportation Group | Shenzhen vs. Zhongshan Broad Ocean Motor |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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