Correlation Between Shenzhen SDG and Zhejiang Yinlun
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By analyzing existing cross correlation between Shenzhen SDG Information and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Shenzhen SDG and Zhejiang Yinlun 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 Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Zhejiang Yinlun.
Diversification Opportunities for Shenzhen SDG and Zhejiang Yinlun
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Zhejiang is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Zhejiang Yinlun
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 1.15 times less return on investment than Zhejiang Yinlun. In addition to that, Shenzhen SDG is 1.05 times more volatile than Zhejiang Yinlun Machinery. It trades about 0.02 of its total potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about 0.02 per unit of volatility. If you would invest 1,995 in Zhejiang Yinlun Machinery on November 6, 2024 and sell it today you would earn a total of 21.00 from holding Zhejiang Yinlun Machinery or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Shenzhen SDG Information |
| Zhejiang Yinlun Machinery |
Shenzhen SDG and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Zhejiang Yinlun
The main advantage of trading using opposite Shenzhen SDG and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Zhejiang Yinlun 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 Zhejiang Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| Shenzhen SDG vs. Quectel Wireless Solutions | Shenzhen SDG vs. Longmaster Information Tech | Shenzhen SDG vs. Newcapec Electronics Co | Shenzhen SDG vs. Bonree Data Technology |
| Zhejiang Yinlun vs. Fujian Oriental Silver | Zhejiang Yinlun vs. Offshore Oil Engineering | Zhejiang Yinlun vs. Bosera CMSK Industrial | Zhejiang Yinlun vs. Ningbo Fujia Industrial |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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