Correlation Between Shenzhen SDG and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen SDG Information and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Shenzhen SDG and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Guangdong Jingyi.
Diversification Opportunities for Shenzhen SDG and Guangdong Jingyi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Guangdong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Guangdong Jingyi
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 0.62 times more return on investment than Guangdong Jingyi. However, Shenzhen SDG Information is 1.62 times less risky than Guangdong Jingyi. It trades about -0.27 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.23 per unit of risk. If you would invest 608.00 in Shenzhen SDG Information on October 11, 2024 and sell it today you would lose (69.00) from holding Shenzhen SDG Information or give up 11.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Shenzhen SDG Information |
| Guangdong Jingyi Metal |
Shenzhen SDG and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Guangdong Jingyi
The main advantage of trading using opposite Shenzhen SDG and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Shenzhen SDG vs. Universal Scientific Industrial | Shenzhen SDG vs. Zhongshan Public Utilities | Shenzhen SDG vs. BTG Hotels Group | Shenzhen SDG vs. Heilongjiang Transport Development |
| Guangdong Jingyi vs. Heren Health Co | Guangdong Jingyi vs. Jiugui Liquor Co | Guangdong Jingyi vs. Hangzhou Minsheng Healthcare | Guangdong Jingyi vs. Shandong Sinoglory Health |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |