Correlation Between Shenzhen Centralcon and Grandblue Environment
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Grandblue Environment Co, you can compare the effects of market volatilities on Shenzhen Centralcon and Grandblue Environment 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 Centralcon with a short position of Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Grandblue Environment.
Diversification Opportunities for Shenzhen Centralcon and Grandblue Environment
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Grandblue is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment and Shenzhen Centralcon 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 Centralcon Investment are associated (or correlated) with Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Grandblue Environment go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Grandblue Environment
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Grandblue Environment. In addition to that, Shenzhen Centralcon is 1.92 times more volatile than Grandblue Environment Co. It trades about -0.07 of its total potential returns per unit of risk. Grandblue Environment Co is currently generating about -0.05 per unit of volatility. If you would invest 2,309 in Grandblue Environment Co on October 14, 2024 and sell it today you would lose (115.00) from holding Grandblue Environment Co or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Grandblue Environment Co
Performance |
| Timeline |
| Shenzhen Centralcon |
| Grandblue Environment |
Shenzhen Centralcon and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Grandblue Environment
The main advantage of trading using opposite Shenzhen Centralcon and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| Shenzhen Centralcon vs. HeBei Jinniu Chemical | Shenzhen Centralcon vs. Wuxi Chemical Equipment | Shenzhen Centralcon vs. Dosilicon Co | Shenzhen Centralcon vs. Hubei Xingfa Chemicals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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