Correlation Between De Rucci and Shenzhen Changfang
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By analyzing existing cross correlation between De Rucci Healthy and Shenzhen Changfang Light, you can compare the effects of market volatilities on De Rucci and Shenzhen Changfang 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 De Rucci with a short position of Shenzhen Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Rucci and Shenzhen Changfang.
Diversification Opportunities for De Rucci and Shenzhen Changfang
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 001323 and Shenzhen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding De Rucci Healthy and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light and De Rucci 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 De Rucci Healthy are associated (or correlated) with Shenzhen Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of De Rucci i.e., De Rucci and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between De Rucci and Shenzhen Changfang
Assuming the 90 days trading horizon De Rucci Healthy is expected to under-perform the Shenzhen Changfang. But the stock apears to be less risky and, when comparing its historical volatility, De Rucci Healthy is 1.65 times less risky than Shenzhen Changfang. The stock trades about -0.02 of its potential returns per unit of risk. The Shenzhen Changfang Light is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 165.00 in Shenzhen Changfang Light on October 23, 2024 and sell it today you would earn a total of 28.00 from holding Shenzhen Changfang Light or generate 16.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Rucci Healthy vs. Shenzhen Changfang Light
Performance |
| Timeline |
| De Rucci Healthy |
| Shenzhen Changfang Light |
De Rucci and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Rucci and Shenzhen Changfang
The main advantage of trading using opposite De Rucci and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Rucci position performs unexpectedly, Shenzhen Changfang 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 Changfang will offset losses from the drop in Shenzhen Changfang's long position.| De Rucci vs. XinJiang GuoTong Pipeline | De Rucci vs. Dhc Software Co | De Rucci vs. Shaanxi Meineng Clean | De Rucci vs. Cabio Biotech Wuhan |
| Shenzhen Changfang vs. Cabio Biotech Wuhan | Shenzhen Changfang vs. De Rucci Healthy | Shenzhen Changfang vs. Anhui Huaren Health | Shenzhen Changfang vs. Jiujiang Shanshui Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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