Correlation Between Lander Sports and Shenzhen Bingchuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lander Sports Development and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on Lander Sports and Shenzhen Bingchuan 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 Lander Sports with a short position of Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Shenzhen Bingchuan.
Diversification Opportunities for Lander Sports and Shenzhen Bingchuan
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lander and Shenzhen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan and Lander Sports 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 Lander Sports Development are associated (or correlated) with Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of Lander Sports i.e., Lander Sports and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between Lander Sports and Shenzhen Bingchuan
Assuming the 90 days trading horizon Lander Sports is expected to generate 1.3 times less return on investment than Shenzhen Bingchuan. In addition to that, Lander Sports is 1.39 times more volatile than Shenzhen Bingchuan Network. It trades about 0.06 of its total potential returns per unit of risk. Shenzhen Bingchuan Network is currently generating about 0.11 per unit of volatility. If you would invest 2,068 in Shenzhen Bingchuan Network on October 29, 2024 and sell it today you would earn a total of 131.00 from holding Shenzhen Bingchuan Network or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lander Sports Development vs. Shenzhen Bingchuan Network
Performance |
| Timeline |
| Lander Sports Development |
| Shenzhen Bingchuan |
Lander Sports and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Shenzhen Bingchuan
The main advantage of trading using opposite Lander Sports and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports position performs unexpectedly, Shenzhen Bingchuan 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 Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| Lander Sports vs. Agricultural Bank of | Lander Sports vs. Industrial and Commercial | Lander Sports vs. Bank of China | Lander Sports vs. China Construction Bank |
| Shenzhen Bingchuan vs. Quectel Wireless Solutions | Shenzhen Bingchuan vs. Shantou Wanshun Package | Shenzhen Bingchuan vs. Success Electronics | Shenzhen Bingchuan vs. Aurora Optoelectronics Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |