Correlation Between Shenzhen SDG and Ciwen Media
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By analyzing existing cross correlation between Shenzhen SDG Information and Ciwen Media Co, you can compare the effects of market volatilities on Shenzhen SDG and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Ciwen Media.
Diversification Opportunities for Shenzhen SDG and Ciwen Media
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Ciwen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Ciwen Media go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Ciwen Media
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 6.17 times less return on investment than Ciwen Media. But when comparing it to its historical volatility, Shenzhen SDG Information is 1.07 times less risky than Ciwen Media. It trades about 0.0 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 686.00 in Ciwen Media Co on October 16, 2024 and sell it today you would lose (126.00) from holding Ciwen Media Co or give up 18.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Ciwen Media Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| Ciwen Media |
Shenzhen SDG and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Ciwen Media
The main advantage of trading using opposite Shenzhen SDG and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| Shenzhen SDG vs. 360 Security Technology | Shenzhen SDG vs. Xiandai Investment Co | Shenzhen SDG vs. Zhongrun Resources Investment | Shenzhen SDG vs. Kingsignal Technology Co |
| Ciwen Media vs. Jiangxi Hengda Hi Tech | Ciwen Media vs. Guangdong Jingyi Metal | Ciwen Media vs. Runjian Communication Co | Ciwen Media vs. Anhui Jinhe 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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