Correlation Between Strait Innovation and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Strait Innovation Internet and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Strait Innovation and Shenzhen Zhongzhuang 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 Strait Innovation with a short position of Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strait Innovation and Shenzhen Zhongzhuang.
Diversification Opportunities for Strait Innovation and Shenzhen Zhongzhuang
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Strait and Shenzhen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Strait Innovation Internet and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang and Strait Innovation 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 Strait Innovation Internet are associated (or correlated) with Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Strait Innovation i.e., Strait Innovation and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Strait Innovation and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Strait Innovation is expected to generate 1.08 times less return on investment than Shenzhen Zhongzhuang. In addition to that, Strait Innovation is 1.57 times more volatile than Shenzhen Zhongzhuang Construction. It trades about 0.23 of its total potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.38 per unit of volatility. If you would invest 204.00 in Shenzhen Zhongzhuang Construction on September 25, 2024 and sell it today you would earn a total of 214.00 from holding Shenzhen Zhongzhuang Construction or generate 104.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Strait Innovation Internet vs. Shenzhen Zhongzhuang Construct
Performance |
Timeline |
Strait Innovation |
Shenzhen Zhongzhuang |
Strait Innovation and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strait Innovation and Shenzhen Zhongzhuang
The main advantage of trading using opposite Strait Innovation and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strait Innovation position performs unexpectedly, Shenzhen Zhongzhuang 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 Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.Strait Innovation vs. Guangzhou Jointas Chemical | Strait Innovation vs. Shenzhen Noposion Agrochemicals | Strait Innovation vs. Sichuan Hebang Biotechnology | Strait Innovation vs. Wuhan Hvsen Biotechnology |
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..
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