Correlation Between Shenzhen SDG and China International
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By analyzing existing cross correlation between Shenzhen SDG Information and China International Capital, you can compare the effects of market volatilities on Shenzhen SDG and China International 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 China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and China International.
Diversification Opportunities for Shenzhen SDG and China International
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and China International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International 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 China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and China International go up and down completely randomly.
Pair Corralation between Shenzhen SDG and China International
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 1.03 times more return on investment than China International. However, Shenzhen SDG is 1.03 times more volatile than China International Capital. It trades about 0.06 of its potential returns per unit of risk. China International Capital is currently generating about -0.06 per unit of risk. If you would invest 547.00 in Shenzhen SDG Information on August 29, 2024 and sell it today you would earn a total of 17.00 from holding Shenzhen SDG Information or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. China International Capital
Performance |
| Timeline |
| Shenzhen SDG Information |
| China International |
Shenzhen SDG and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and China International
The main advantage of trading using opposite Shenzhen SDG and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, China International 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 China International will offset losses from the drop in China International's long position.| Shenzhen SDG vs. China State Construction | Shenzhen SDG vs. Huafa Industrial Co | Shenzhen SDG vs. China International Capital | Shenzhen SDG vs. Kweichow Moutai Co |
| China International vs. Youyou Foods Co | China International vs. Sinomach General Machinery | China International vs. Shanghai Ziyan Foods | China International vs. Sichuan Teway Food |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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