Correlation Between China Longyuan and Shenzhen Fortune
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Longyuan Power and Shenzhen Fortune Trend, you can compare the effects of market volatilities on China Longyuan and Shenzhen Fortune 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 China Longyuan with a short position of Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Longyuan and Shenzhen Fortune.
Diversification Opportunities for China Longyuan and Shenzhen Fortune
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shenzhen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding China Longyuan Power and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend and China Longyuan 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 China Longyuan Power are associated (or correlated) with Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of China Longyuan i.e., China Longyuan and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between China Longyuan and Shenzhen Fortune
Assuming the 90 days trading horizon China Longyuan Power is expected to under-perform the Shenzhen Fortune. But the stock apears to be less risky and, when comparing its historical volatility, China Longyuan Power is 2.23 times less risky than Shenzhen Fortune. The stock trades about -0.06 of its potential returns per unit of risk. The Shenzhen Fortune Trend is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 15,550 in Shenzhen Fortune Trend on August 28, 2024 and sell it today you would earn a total of 595.00 from holding Shenzhen Fortune Trend or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Longyuan Power vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| China Longyuan Power |
| Shenzhen Fortune Trend |
China Longyuan and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Longyuan and Shenzhen Fortune
The main advantage of trading using opposite China Longyuan and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Longyuan position performs unexpectedly, Shenzhen Fortune 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 Fortune will offset losses from the drop in Shenzhen Fortune's long position.| China Longyuan vs. Ningbo Ligong Online | China Longyuan vs. Epoxy Base Electronic | China Longyuan vs. Southern PublishingMedia Co | China Longyuan vs. Changjiang Publishing Media |
| Shenzhen Fortune vs. Agricultural Bank of | Shenzhen Fortune vs. Industrial and Commercial | Shenzhen Fortune vs. Bank of China | Shenzhen Fortune vs. PetroChina Co Ltd |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |