Correlation Between Shaanxi Meineng and Guangdong Wens
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Shaanxi Meineng and Guangdong Wens 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 Shaanxi Meineng with a short position of Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Guangdong Wens.
Diversification Opportunities for Shaanxi Meineng and Guangdong Wens
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shaanxi and Guangdong is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Guangdong Wens go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Guangdong Wens
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 1.66 times more return on investment than Guangdong Wens. However, Shaanxi Meineng is 1.66 times more volatile than Guangdong Wens Foodstuff. It trades about 0.16 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.17 per unit of risk. If you would invest 1,283 in Shaanxi Meineng Clean on September 4, 2024 and sell it today you would earn a total of 113.00 from holding Shaanxi Meineng Clean or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Guangdong Wens Foodstuff |
Shaanxi Meineng and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Guangdong Wens
The main advantage of trading using opposite Shaanxi Meineng and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Shaanxi Meineng vs. Wuhan Hvsen Biotechnology | Shaanxi Meineng vs. Zhangjiagang Freetrade Science | Shaanxi Meineng vs. Jiangsu GDK Biotechnology | Shaanxi Meineng vs. Yili Chuanning Biotechnology |
| Guangdong Wens vs. Lingyuan Iron Steel | Guangdong Wens vs. Changjiang Publishing Media | Guangdong Wens vs. StarPower Semiconductor | Guangdong Wens vs. Semiconductor Manufacturing Electronics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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