Correlation Between Shenzhen RoadRover and Zhejiang Construction
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By analyzing existing cross correlation between Shenzhen RoadRover Technology and Zhejiang Construction Investment, you can compare the effects of market volatilities on Shenzhen RoadRover and Zhejiang Construction 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 RoadRover with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen RoadRover and Zhejiang Construction.
Diversification Opportunities for Shenzhen RoadRover and Zhejiang Construction
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Zhejiang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen RoadRover Technology and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and Shenzhen RoadRover 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 RoadRover Technology are associated (or correlated) with Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Shenzhen RoadRover i.e., Shenzhen RoadRover and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Shenzhen RoadRover and Zhejiang Construction
Assuming the 90 days trading horizon Shenzhen RoadRover is expected to generate 9.48 times less return on investment than Zhejiang Construction. But when comparing it to its historical volatility, Shenzhen RoadRover Technology is 1.24 times less risky than Zhejiang Construction. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 782.00 in Zhejiang Construction Investment on September 25, 2024 and sell it today you would earn a total of 146.00 from holding Zhejiang Construction Investment or generate 18.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.31% |
Values | Daily Returns |
Shenzhen RoadRover Technology vs. Zhejiang Construction Investme
Performance |
Timeline |
Shenzhen RoadRover |
Zhejiang Construction |
Shenzhen RoadRover and Zhejiang Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen RoadRover and Zhejiang Construction
The main advantage of trading using opposite Shenzhen RoadRover and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen RoadRover position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.Shenzhen RoadRover vs. Zhejiang Construction Investment | Shenzhen RoadRover vs. Tieling Newcity Investment | Shenzhen RoadRover vs. Industrial Bank Co | Shenzhen RoadRover vs. Chengdu Xingrong Investment |
Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. Agricultural Bank of | Zhejiang Construction vs. China Construction Bank | Zhejiang Construction vs. Bank of China |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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