Correlation Between Shenzhen SDG and Ningbo Kangqiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen SDG Information and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Shenzhen SDG and Ningbo Kangqiang 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 SDG with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Ningbo Kangqiang.
Diversification Opportunities for Shenzhen SDG and Ningbo Kangqiang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Ningbo is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele and Shenzhen SDG 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 SDG Information are associated (or correlated) with Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Ningbo Kangqiang
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 0.67 times more return on investment than Ningbo Kangqiang. However, Shenzhen SDG Information is 1.5 times less risky than Ningbo Kangqiang. It trades about 0.04 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about -0.09 per unit of risk. If you would invest 602.00 in Shenzhen SDG Information on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Shenzhen SDG Information or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Shenzhen SDG Information |
| Ningbo Kangqiang Ele |
Shenzhen SDG and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Ningbo Kangqiang
The main advantage of trading using opposite Shenzhen SDG and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Shenzhen SDG vs. Gansu Jiu Steel | Shenzhen SDG vs. Shandong Mining Machinery | Shenzhen SDG vs. Aba Chemicals Corp | Shenzhen SDG vs. BlueFocus Communication Group |
| Ningbo Kangqiang vs. Guangdong Brandmax Marketing | Ningbo Kangqiang vs. Gansu Huangtai Wine marketing | Ningbo Kangqiang vs. Sinocat Environmental Technology | Ningbo Kangqiang vs. Duzhe Publishing Media |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges |