Correlation Between Bohai Leasing and Shenzhen New
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By analyzing existing cross correlation between Bohai Leasing Co and Shenzhen New Nanshan, you can compare the effects of market volatilities on Bohai Leasing and Shenzhen New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Shenzhen New.
Diversification Opportunities for Bohai Leasing and Shenzhen New
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bohai and Shenzhen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Shenzhen New go up and down completely randomly.
Pair Corralation between Bohai Leasing and Shenzhen New
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 1.14 times more return on investment than Shenzhen New. However, Bohai Leasing is 1.14 times more volatile than Shenzhen New Nanshan. It trades about -0.17 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about -0.22 per unit of risk. If you would invest 380.00 in Bohai Leasing Co on October 24, 2024 and sell it today you would lose (27.00) from holding Bohai Leasing Co or give up 7.11% 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 New Nanshan
Performance |
| Timeline |
| Bohai Leasing |
| Shenzhen New Nanshan |
Bohai Leasing and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Shenzhen New
The main advantage of trading using opposite Bohai Leasing and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Shenzhen New 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 New will offset losses from the drop in Shenzhen New's long position.| Bohai Leasing vs. Beijing Sanyuan Foods | Bohai Leasing vs. Fujian Anjoy Foods | Bohai Leasing vs. Eastroc Beverage Group | Bohai Leasing vs. Fuda Alloy Materials |
| Shenzhen New vs. Jiangsu Jinling Sports | Shenzhen New vs. Zhejiang Construction Investment | Shenzhen New vs. Metro Investment Development | Shenzhen New vs. Xiamen Insight Investment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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