Correlation Between Shenzhen SDG and Beijing Shanghai
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By analyzing existing cross correlation between Shenzhen SDG Information and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Shenzhen SDG and Beijing Shanghai 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 Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Beijing Shanghai.
Diversification Opportunities for Shenzhen SDG and Beijing Shanghai
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Beijing is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High 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 Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Beijing Shanghai
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 2.85 times more return on investment than Beijing Shanghai. However, Shenzhen SDG is 2.85 times more volatile than Beijing Shanghai High Speed. It trades about 0.0 of its potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about -0.32 per unit of risk. If you would invest 565.00 in Shenzhen SDG Information on November 2, 2024 and sell it today you would lose (3.00) from holding Shenzhen SDG Information or give up 0.53% 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. Beijing Shanghai High Speed
Performance |
| Timeline |
| Shenzhen SDG Information |
| Beijing Shanghai High |
Shenzhen SDG and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Beijing Shanghai
The main advantage of trading using opposite Shenzhen SDG and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Beijing Shanghai 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 Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Shenzhen SDG vs. China Building Material | Shenzhen SDG vs. Zoje Resources Investment | Shenzhen SDG vs. Luyin Investment Group | Shenzhen SDG vs. Hangzhou Arcvideo Technology |
| Beijing Shanghai vs. Zhongrun Resources Investment | Beijing Shanghai vs. Hunan Investment Group | Beijing Shanghai vs. Chengdu Xingrong Investment | Beijing Shanghai vs. Nuode Investment 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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