Correlation Between Shenzhen SDG and Shanghai Action
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By analyzing existing cross correlation between Shenzhen SDG Information and Shanghai Action Education, you can compare the effects of market volatilities on Shenzhen SDG and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Shanghai Action.
Diversification Opportunities for Shenzhen SDG and Shanghai Action
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Shanghai is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Shanghai Action go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Shanghai Action
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 1.69 times more return on investment than Shanghai Action. However, Shenzhen SDG is 1.69 times more volatile than Shanghai Action Education. It trades about 0.17 of its potential returns per unit of risk. Shanghai Action Education is currently generating about -0.22 per unit of risk. If you would invest 511.00 in Shenzhen SDG Information on August 24, 2024 and sell it today you would earn a total of 58.00 from holding Shenzhen SDG Information or generate 11.35% 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. Shanghai Action Education
Performance |
| Timeline |
| Shenzhen SDG Information |
| Shanghai Action Education |
Shenzhen SDG and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Shanghai Action
The main advantage of trading using opposite Shenzhen SDG and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Shenzhen SDG vs. ZJBC Information Technology | Shenzhen SDG vs. Lootom Telcovideo Network | Shenzhen SDG vs. XinJiang GuoTong Pipeline | Shenzhen SDG vs. Changchun Faway Automobile |
| Shanghai Action vs. Shenzhen SDG Information | Shanghai Action vs. Fujian Oriental Silver | Shanghai Action vs. Uroica Mining Safety | Shanghai Action vs. YLZ Information Tech |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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