Correlation Between Shenzhen SDG and Andon Health
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By analyzing existing cross correlation between Shenzhen SDG Information and Andon Health Co, you can compare the effects of market volatilities on Shenzhen SDG and Andon Health 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 Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Andon Health.
Diversification Opportunities for Shenzhen SDG and Andon Health
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Andon is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health 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 Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Andon Health go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Andon Health
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 2.3 times more return on investment than Andon Health. However, Shenzhen SDG is 2.3 times more volatile than Andon Health Co. It trades about -0.04 of its potential returns per unit of risk. Andon Health Co is currently generating about -0.23 per unit of risk. If you would invest 578.00 in Shenzhen SDG Information on October 31, 2024 and sell it today you would lose (16.00) from holding Shenzhen SDG Information or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Andon Health Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| Andon Health |
Shenzhen SDG and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Andon Health
The main advantage of trading using opposite Shenzhen SDG and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Andon Health 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 Andon Health will offset losses from the drop in Andon Health's long position.| Shenzhen SDG vs. Jiangsu Financial Leasing | Shenzhen SDG vs. AUPU Home Style | Shenzhen SDG vs. Fujian Oriental Silver | Shenzhen SDG vs. Oppein Home Group |
| Andon Health vs. Hubeiyichang Transportation Group | Andon Health vs. Jiangsu Broadcasting Cable | Andon Health vs. Chongqing Road Bridge | Andon Health vs. Silkroad Visual Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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