Correlation Between Shenzhen SDG and Guangdong Xiongsu
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By analyzing existing cross correlation between Shenzhen SDG Information and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Shenzhen SDG and Guangdong Xiongsu 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 Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Guangdong Xiongsu.
Diversification Opportunities for Shenzhen SDG and Guangdong Xiongsu
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Guangdong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Guangdong Xiongsu
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 1.1 times less return on investment than Guangdong Xiongsu. But when comparing it to its historical volatility, Shenzhen SDG Information is 1.97 times less risky than Guangdong Xiongsu. It trades about 0.19 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 474.00 in Guangdong Xiongsu Technology on October 18, 2024 and sell it today you would earn a total of 182.00 from holding Guangdong Xiongsu Technology or generate 38.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Shenzhen SDG Information |
| Guangdong Xiongsu |
Shenzhen SDG and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Guangdong Xiongsu
The main advantage of trading using opposite Shenzhen SDG and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Guangdong Xiongsu 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 Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Shenzhen SDG vs. Chenzhou Jingui Silver | Shenzhen SDG vs. XinJiang GuoTong Pipeline | Shenzhen SDG vs. Hubei Geoway Investment | Shenzhen SDG vs. Shenyang Blue Silver |
| Guangdong Xiongsu vs. Kangping Technology Co | Guangdong Xiongsu vs. Hygon Information Technology | Guangdong Xiongsu vs. Shenzhen SDG Information | Guangdong Xiongsu vs. ButOne Information Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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