Correlation Between Shenzhen SDG and Jinduicheng Molybdenum
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By analyzing existing cross correlation between Shenzhen SDG Information and Jinduicheng Molybdenum Co, you can compare the effects of market volatilities on Shenzhen SDG and Jinduicheng Molybdenum 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 Jinduicheng Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Jinduicheng Molybdenum.
Diversification Opportunities for Shenzhen SDG and Jinduicheng Molybdenum
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Jinduicheng is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Jinduicheng Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinduicheng Molybdenum 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 Jinduicheng Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinduicheng Molybdenum has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Jinduicheng Molybdenum go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Jinduicheng Molybdenum
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to under-perform the Jinduicheng Molybdenum. In addition to that, Shenzhen SDG is 1.79 times more volatile than Jinduicheng Molybdenum Co. It trades about -0.02 of its total potential returns per unit of risk. Jinduicheng Molybdenum Co is currently generating about 0.05 per unit of volatility. If you would invest 904.00 in Jinduicheng Molybdenum Co on September 14, 2024 and sell it today you would earn a total of 182.00 from holding Jinduicheng Molybdenum Co or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Jinduicheng Molybdenum Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| Jinduicheng Molybdenum |
Shenzhen SDG and Jinduicheng Molybdenum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Jinduicheng Molybdenum
The main advantage of trading using opposite Shenzhen SDG and Jinduicheng Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Jinduicheng Molybdenum 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 Jinduicheng Molybdenum will offset losses from the drop in Jinduicheng Molybdenum's long position.| Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. Agricultural Bank of |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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