Correlation Between Shenzhen Zhongzhuang and Weichai Heavy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Weichai Heavy Machinery, you can compare the effects of market volatilities on Shenzhen Zhongzhuang and Weichai Heavy 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 Zhongzhuang with a short position of Weichai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Weichai Heavy.
Diversification Opportunities for Shenzhen Zhongzhuang and Weichai Heavy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Weichai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Weichai Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weichai Heavy Machinery and Shenzhen Zhongzhuang 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 Zhongzhuang Construction are associated (or correlated) with Weichai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weichai Heavy Machinery has no effect on the direction of Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Weichai Heavy go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Weichai Heavy
Assuming the 90 days trading horizon Shenzhen Zhongzhuang is expected to generate 2.44 times less return on investment than Weichai Heavy. In addition to that, Shenzhen Zhongzhuang is 1.13 times more volatile than Weichai Heavy Machinery. It trades about 0.01 of its total potential returns per unit of risk. Weichai Heavy Machinery is currently generating about 0.04 per unit of volatility. If you would invest 915.00 in Weichai Heavy Machinery on September 24, 2024 and sell it today you would earn a total of 394.00 from holding Weichai Heavy Machinery or generate 43.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Weichai Heavy Machinery
Performance |
Timeline |
Shenzhen Zhongzhuang |
Weichai Heavy Machinery |
Shenzhen Zhongzhuang and Weichai Heavy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Zhongzhuang and Weichai Heavy
The main advantage of trading using opposite Shenzhen Zhongzhuang and Weichai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang position performs unexpectedly, Weichai Heavy 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 Weichai Heavy will offset losses from the drop in Weichai Heavy's long position.Shenzhen Zhongzhuang vs. Strait Innovation Internet | Shenzhen Zhongzhuang vs. Jonjee Hi tech Industrial | Shenzhen Zhongzhuang vs. Kuang Chi Technologies | Shenzhen Zhongzhuang vs. Sichuan Jinshi Technology |
Weichai Heavy vs. Offshore Oil Engineering | Weichai Heavy vs. Marssenger Kitchenware Co | Weichai Heavy vs. Chahua Modern Housewares | Weichai Heavy vs. Zhangjiagang Freetrade Science |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |