Correlation Between Zhongtong Guomai and China International
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By analyzing existing cross correlation between Zhongtong Guomai Communication and China International Capital, you can compare the effects of market volatilities on Zhongtong Guomai and China International 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 Zhongtong Guomai with a short position of China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and China International.
Diversification Opportunities for Zhongtong Guomai and China International
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and China is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and China International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and China International go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and China International
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.02 times more return on investment than China International. However, Zhongtong Guomai is 1.02 times more volatile than China International Capital. It trades about 0.22 of its potential returns per unit of risk. China International Capital is currently generating about 0.13 per unit of risk. If you would invest 733.00 in Zhongtong Guomai Communication on September 13, 2024 and sell it today you would earn a total of 412.00 from holding Zhongtong Guomai Communication or generate 56.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. China International Capital
Performance |
Timeline |
Zhongtong Guomai Com |
China International |
Zhongtong Guomai and China International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and China International
The main advantage of trading using opposite Zhongtong Guomai and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, China International 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 International will offset losses from the drop in China International's long position.Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
China International vs. China Petroleum Chemical | China International vs. PetroChina Co Ltd | China International vs. China State Construction | China International vs. China Railway Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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