Correlation Between Shenzhen SDG and Qingdao Citymedia
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By analyzing existing cross correlation between Shenzhen SDG Information and Qingdao Citymedia Co, you can compare the effects of market volatilities on Shenzhen SDG and Qingdao Citymedia 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 Qingdao Citymedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Qingdao Citymedia.
Diversification Opportunities for Shenzhen SDG and Qingdao Citymedia
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Qingdao is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Qingdao Citymedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Citymedia 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 Qingdao Citymedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Citymedia has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Qingdao Citymedia go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Qingdao Citymedia
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to under-perform the Qingdao Citymedia. In addition to that, Shenzhen SDG is 1.27 times more volatile than Qingdao Citymedia Co. It trades about 0.0 of its total potential returns per unit of risk. Qingdao Citymedia Co is currently generating about 0.01 per unit of volatility. If you would invest 691.00 in Qingdao Citymedia Co on October 13, 2024 and sell it today you would lose (42.00) from holding Qingdao Citymedia Co or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Qingdao Citymedia Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| Qingdao Citymedia |
Shenzhen SDG and Qingdao Citymedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Qingdao Citymedia
The main advantage of trading using opposite Shenzhen SDG and Qingdao Citymedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Qingdao Citymedia 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 Qingdao Citymedia will offset losses from the drop in Qingdao Citymedia's long position.| Shenzhen SDG vs. Kweichow Moutai Co | Shenzhen SDG vs. NAURA Technology Group | Shenzhen SDG vs. Zhejiang Orient Gene | Shenzhen SDG vs. APT Medical |
| Qingdao Citymedia vs. Longmaster Information Tech | Qingdao Citymedia vs. Bonree Data Technology | Qingdao Citymedia vs. Hangzhou Gisway Information | Qingdao Citymedia vs. Shenzhen SDG Information |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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