Correlation Between Shenzhen SDG and Yili Chuanning
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By analyzing existing cross correlation between Shenzhen SDG Information and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Shenzhen SDG and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Yili Chuanning.
Diversification Opportunities for Shenzhen SDG and Yili Chuanning
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Yili is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Yili Chuanning go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Yili Chuanning
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 16.89 times less return on investment than Yili Chuanning. In addition to that, Shenzhen SDG is 1.22 times more volatile than Yili Chuanning Biotechnology. It trades about 0.0 of its total potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.03 per unit of volatility. If you would invest 894.00 in Yili Chuanning Biotechnology on October 16, 2024 and sell it today you would earn a total of 233.00 from holding Yili Chuanning Biotechnology or generate 26.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Shenzhen SDG Information |
| Yili Chuanning Biote |
Shenzhen SDG and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Yili Chuanning
The main advantage of trading using opposite Shenzhen SDG and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Shenzhen SDG vs. Shenyang Huitian Thermal | Shenzhen SDG vs. Western Metal Materials | Shenzhen SDG vs. Guangdong Jingyi Metal | Shenzhen SDG vs. Bohai Leasing Co |
| Yili Chuanning vs. Luolai Home Textile | Yili Chuanning vs. Oppein Home Group | Yili Chuanning vs. UE Furniture Co | Yili Chuanning vs. Nanjing OLO Home |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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