Correlation Between Shenzhen SDG and Beijing SuperMap
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By analyzing existing cross correlation between Shenzhen SDG Information and Beijing SuperMap Software, you can compare the effects of market volatilities on Shenzhen SDG and Beijing SuperMap 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 Beijing SuperMap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Beijing SuperMap.
Diversification Opportunities for Shenzhen SDG and Beijing SuperMap
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Beijing SuperMap Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SuperMap Software 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 Beijing SuperMap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SuperMap Software has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Beijing SuperMap go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Beijing SuperMap
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 0.86 times more return on investment than Beijing SuperMap. However, Shenzhen SDG Information is 1.17 times less risky than Beijing SuperMap. It trades about 0.0 of its potential returns per unit of risk. Beijing SuperMap Software is currently generating about -0.08 per unit of risk. If you would invest 613.00 in Shenzhen SDG Information on September 13, 2024 and sell it today you would lose (3.00) from holding Shenzhen SDG Information or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Beijing SuperMap Software
Performance |
| Timeline |
| Shenzhen SDG Information |
| Beijing SuperMap Software |
Shenzhen SDG and Beijing SuperMap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Beijing SuperMap
The main advantage of trading using opposite Shenzhen SDG and Beijing SuperMap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Beijing SuperMap 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 Beijing SuperMap will offset losses from the drop in Beijing SuperMap's long position.| Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. Agricultural Bank of |
| Beijing SuperMap vs. Nanjing Putian Telecommunications | Beijing SuperMap vs. Tianjin Realty Development | Beijing SuperMap vs. Kangyue Technology Co | Beijing SuperMap vs. Shenzhen Hifuture Electric |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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