Correlation Between Sinotrans and Zangge Holding
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By analyzing existing cross correlation between Sinotrans Ltd Class and Zangge Holding Co, you can compare the effects of market volatilities on Sinotrans and Zangge Holding 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 Sinotrans with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinotrans and Zangge Holding.
Diversification Opportunities for Sinotrans and Zangge Holding
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinotrans and Zangge is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sinotrans Ltd Class and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Sinotrans 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 Sinotrans Ltd Class are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Sinotrans i.e., Sinotrans and Zangge Holding go up and down completely randomly.
Pair Corralation between Sinotrans and Zangge Holding
Assuming the 90 days trading horizon Sinotrans Ltd Class is expected to generate 0.67 times more return on investment than Zangge Holding. However, Sinotrans Ltd Class is 1.49 times less risky than Zangge Holding. It trades about 0.13 of its potential returns per unit of risk. Zangge Holding Co is currently generating about -0.15 per unit of risk. If you would invest 512.00 in Sinotrans Ltd Class on September 25, 2024 and sell it today you would earn a total of 13.00 from holding Sinotrans Ltd Class or generate 2.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Sinotrans Ltd Class vs. Zangge Holding Co
Performance |
Timeline |
Sinotrans Class |
Zangge Holding |
Sinotrans and Zangge Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinotrans and Zangge Holding
The main advantage of trading using opposite Sinotrans and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinotrans position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.Sinotrans vs. Ming Yang Smart | Sinotrans vs. 159681 | Sinotrans vs. 159005 | Sinotrans vs. Loctek Ergonomic Technology |
Zangge Holding vs. Guangdong Shenglu Telecommunication | Zangge Holding vs. Gan Yuan Foods | Zangge Holding vs. Qingdao Foods Co | Zangge Holding vs. Fiberhome Telecommunication Technologies |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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