Correlation Between Shenzhen SDG and Bangyan Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen SDG Information and Bangyan Technology Co, you can compare the effects of market volatilities on Shenzhen SDG and Bangyan Technology 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 Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Bangyan Technology.
Diversification Opportunities for Shenzhen SDG and Bangyan Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Bangyan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology 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 Bangyan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangyan Technology has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Bangyan Technology go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Bangyan Technology
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 1.2 times more return on investment than Bangyan Technology. However, Shenzhen SDG is 1.2 times more volatile than Bangyan Technology Co. It trades about 0.0 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about -0.02 per unit of risk. If you would invest 720.00 in Shenzhen SDG Information on October 18, 2024 and sell it today you would lose (150.00) from holding Shenzhen SDG Information or give up 20.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Bangyan Technology Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| Bangyan Technology |
Shenzhen SDG and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Bangyan Technology
The main advantage of trading using opposite Shenzhen SDG and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Bangyan Technology 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 Bangyan Technology will offset losses from the drop in Bangyan Technology's long position.| Shenzhen SDG vs. Chenzhou Jingui Silver | Shenzhen SDG vs. XinJiang GuoTong Pipeline | Shenzhen SDG vs. Hubei Geoway Investment | Shenzhen SDG vs. Shenyang Blue Silver |
| Bangyan Technology vs. Shenzhen SDG Information | Bangyan Technology vs. Sino Platinum Metals Co | Bangyan Technology vs. Hainan Mining Co | Bangyan Technology vs. Anhui Tongguan Copper |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |