Correlation Between FSPG Hi and Shenzhen MYS
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By analyzing existing cross correlation between FSPG Hi Tech Co and Shenzhen MYS Environmental, you can compare the effects of market volatilities on FSPG Hi and Shenzhen MYS 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 FSPG Hi with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Shenzhen MYS.
Diversification Opportunities for FSPG Hi and Shenzhen MYS
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FSPG and Shenzhen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and FSPG Hi 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 FSPG Hi Tech Co are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of FSPG Hi i.e., FSPG Hi and Shenzhen MYS go up and down completely randomly.
Pair Corralation between FSPG Hi and Shenzhen MYS
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 0.78 times more return on investment than Shenzhen MYS. However, FSPG Hi Tech Co is 1.28 times less risky than Shenzhen MYS. It trades about -0.06 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about -0.06 per unit of risk. If you would invest 607.00 in FSPG Hi Tech Co on October 24, 2024 and sell it today you would lose (21.00) from holding FSPG Hi Tech Co or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| FSPG Hi Tech |
| Shenzhen MYS Environ |
FSPG Hi and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Shenzhen MYS
The main advantage of trading using opposite FSPG Hi and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| FSPG Hi vs. Huaxia Fund Management | FSPG Hi vs. Hygon Information Technology | FSPG Hi vs. Xinjiang Sailing Information | FSPG Hi vs. Shenzhen SDG Information |
| Shenzhen MYS vs. Runjian Communication Co | Shenzhen MYS vs. FSPG Hi Tech Co | Shenzhen MYS vs. Qingdao Choho Industrial | Shenzhen MYS vs. China Minmetals Rare |
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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