Correlation Between Shenzhen Centralcon and Shanghai Shuixing
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Shanghai Shuixing Home, you can compare the effects of market volatilities on Shenzhen Centralcon and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Shanghai Shuixing.
Diversification Opportunities for Shenzhen Centralcon and Shanghai Shuixing
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Shanghai is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Shanghai Shuixing
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 2.09 times more return on investment than Shanghai Shuixing. However, Shenzhen Centralcon is 2.09 times more volatile than Shanghai Shuixing Home. It trades about 0.72 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.07 per unit of risk. If you would invest 487.00 in Shenzhen Centralcon Investment on November 27, 2024 and sell it today you would earn a total of 218.00 from holding Shenzhen Centralcon Investment or generate 44.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Shenzhen Centralcon |
| Shanghai Shuixing Home |
Shenzhen Centralcon and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Shanghai Shuixing
The main advantage of trading using opposite Shenzhen Centralcon and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Shenzhen Centralcon vs. Tianjin Pengling Rubber | Shenzhen Centralcon vs. Innovative Medical Management | Shenzhen Centralcon vs. Jilin OLED Material | Shenzhen Centralcon vs. Nanya New Material |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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