Correlation Between Shenzhen SDG and Anhui Shiny
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By analyzing existing cross correlation between Shenzhen SDG Information and Anhui Shiny Electronic, you can compare the effects of market volatilities on Shenzhen SDG and Anhui Shiny 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 Anhui Shiny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Anhui Shiny.
Diversification Opportunities for Shenzhen SDG and Anhui Shiny
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Anhui is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Anhui Shiny Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Shiny Electronic 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 Anhui Shiny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Shiny Electronic has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Anhui Shiny go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Anhui Shiny
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to under-perform the Anhui Shiny. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen SDG Information is 1.68 times less risky than Anhui Shiny. The stock trades about -0.11 of its potential returns per unit of risk. The Anhui Shiny Electronic is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,166 in Anhui Shiny Electronic on October 28, 2024 and sell it today you would earn a total of 26.00 from holding Anhui Shiny Electronic or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Anhui Shiny Electronic
Performance |
| Timeline |
| Shenzhen SDG Information |
| Anhui Shiny Electronic |
Shenzhen SDG and Anhui Shiny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Anhui Shiny
The main advantage of trading using opposite Shenzhen SDG and Anhui Shiny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Anhui Shiny 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 Anhui Shiny will offset losses from the drop in Anhui Shiny's long position.| Shenzhen SDG vs. Bus Online Co | Shenzhen SDG vs. Holitech Technology Co | Shenzhen SDG vs. Gome Telecom Equipment | Shenzhen SDG vs. Cultural Investment Holdings |
| Anhui Shiny vs. Fujian Nanwang Environment | Anhui Shiny vs. Beijing Yanjing Brewery | Anhui Shiny vs. Tsingtao Brewery Co | Anhui Shiny vs. Tederic Machinery Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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