Correlation Between Bohai Leasing and Shenzhen SDG
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By analyzing existing cross correlation between Bohai Leasing Co and Shenzhen SDG Information, you can compare the effects of market volatilities on Bohai Leasing and Shenzhen SDG 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 Bohai Leasing with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Shenzhen SDG.
Diversification Opportunities for Bohai Leasing and Shenzhen SDG
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bohai and Shenzhen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Bohai Leasing and Shenzhen SDG
Assuming the 90 days trading horizon Bohai Leasing Co is expected to under-perform the Shenzhen SDG. But the stock apears to be less risky and, when comparing its historical volatility, Bohai Leasing Co is 1.08 times less risky than Shenzhen SDG. The stock trades about -0.16 of its potential returns per unit of risk. The Shenzhen SDG Information is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 586.00 in Shenzhen SDG Information on October 30, 2024 and sell it today you would lose (24.00) from holding Shenzhen SDG Information or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Shenzhen SDG Information
Performance |
| Timeline |
| Bohai Leasing |
| Shenzhen SDG Information |
Bohai Leasing and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Shenzhen SDG
The main advantage of trading using opposite Bohai Leasing and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Bohai Leasing vs. Postal Savings Bank | Bohai Leasing vs. Guosheng Financial Holding | Bohai Leasing vs. Advanced Technology Materials | Bohai Leasing vs. GRIPM Advanced Materials |
| Shenzhen SDG vs. Bus Online Co | Shenzhen SDG vs. Holitech Technology Co | Shenzhen SDG vs. Gome Telecom Equipment | Shenzhen SDG vs. Cultural Investment Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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