Correlation Between Zhejiang Kingland and China Shenhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Kingland Pipeline and China Shenhua Energy, you can compare the effects of market volatilities on Zhejiang Kingland and China Shenhua 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 Zhejiang Kingland with a short position of China Shenhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and China Shenhua.
Diversification Opportunities for Zhejiang Kingland and China Shenhua
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and China is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and China Shenhua Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shenhua Energy and Zhejiang Kingland 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 Zhejiang Kingland Pipeline are associated (or correlated) with China Shenhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shenhua Energy has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and China Shenhua go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and China Shenhua
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the China Shenhua. In addition to that, Zhejiang Kingland is 1.04 times more volatile than China Shenhua Energy. It trades about -0.07 of its total potential returns per unit of risk. China Shenhua Energy is currently generating about 0.04 per unit of volatility. If you would invest 4,093 in China Shenhua Energy on September 25, 2024 and sell it today you would earn a total of 85.00 from holding China Shenhua Energy or generate 2.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Kingland Pipeline vs. China Shenhua Energy
Performance |
Timeline |
Zhejiang Kingland |
China Shenhua Energy |
Zhejiang Kingland and China Shenhua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Kingland and China Shenhua
The main advantage of trading using opposite Zhejiang Kingland and China Shenhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, China Shenhua 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 China Shenhua will offset losses from the drop in China Shenhua's long position.Zhejiang Kingland vs. AUPU Home Style | Zhejiang Kingland vs. Nanxing Furniture Machinery | Zhejiang Kingland vs. Anhui Xinhua Media | Zhejiang Kingland vs. Hengdian Entertainment Co |
China Shenhua vs. Zhejiang Kingland Pipeline | China Shenhua vs. Elite Color Environmental | China Shenhua vs. Shanghai Construction Group | China Shenhua vs. Keeson Technology Corp |
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.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |