Correlation Between ButOne Information and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between ButOne Information Corp and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on ButOne Information 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 ButOne Information with a short position of Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Shenzhen Zhongzhuang.
Diversification Opportunities for ButOne Information and Shenzhen Zhongzhuang
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ButOne and Shenzhen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang and ButOne Information 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 ButOne Information Corp 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 ButOne Information i.e., ButOne Information and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between ButOne Information and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon ButOne Information is expected to generate 1.95 times less return on investment than Shenzhen Zhongzhuang. In addition to that, ButOne Information is 1.14 times more volatile than Shenzhen Zhongzhuang Construction. It trades about 0.2 of its total potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.45 per unit of volatility. If you would invest 194.00 in Shenzhen Zhongzhuang Construction on September 12, 2024 and sell it today you would earn a total of 253.00 from holding Shenzhen Zhongzhuang Construction or generate 130.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ButOne Information Corp vs. Shenzhen Zhongzhuang Construct
Performance |
Timeline |
ButOne Information Corp |
Shenzhen Zhongzhuang |
ButOne Information and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ButOne Information and Shenzhen Zhongzhuang
The main advantage of trading using opposite ButOne Information and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information 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.ButOne Information vs. Lutian Machinery Co | ButOne Information vs. PetroChina Co Ltd | ButOne Information vs. Bank of China | ButOne Information vs. Gansu Jiu Steel |
Shenzhen Zhongzhuang vs. Agricultural Bank of | Shenzhen Zhongzhuang vs. Industrial and Commercial | Shenzhen Zhongzhuang vs. Bank of China | Shenzhen Zhongzhuang vs. PetroChina 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 Stocks Directory module to find actively traded stocks across global markets.
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